Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.
Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 6SQP
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Transcribed Image Text:Why do firms form internal labor markets/use bureaucratic control? According to
Doeringer and Piore it is:
O because employees learn skills on-the-job and the firms wish to reduce turnover.
O in large firms where the owners can't directly observe how hard their employees are
working it is to increase work effort and to make sure the job is done correctly.
O in order to prevent other firms from hiring away their most productive employees.
O to allow the firm to pay an optimal wage that will reduce the probability that workers will
shirk on the job.
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