Internal labor markets are most likely to exist if:
A)workers do not require extensive amounts of firm-specific training
B)there are substantial costs to the employer associated with worker turnover
C)costs of screening and recruiting job applicants are relatively low
D)workers' productivity does not increase with experience

Question

Quizplus · Accepted Answer

Internal labor markets are more likely to exist if there are substantial costs associated with worker turnover because employers will want to retain their skilled and experienced workers. When there are high costs associated with recruiting and training new employees, it becomes more beneficial for the employer to promote and develop existing employees, creating an internal labor market.

Internal Labor Markets Are Most Likely to Exist If