Internal labor markets benefit senior employees by:
A)forcing the firm to pay all of the expenses associated with general training
B)providing them with greater freedom through the informal work rules associated with such markets
C)providing them with increased protection from job layoff
D)protecting them from pay cuts when they leave the firm for other jobs

Question

Quizplus · Accepted Answer

Internal labor markets provide senior employees with increased protection from job layoff as they are more likely to be retained within the company due to their experience and knowledge. This can provide them with job security and stability. Options A, B, and D are incorrect. Option A is not true as the firm also benefits from the general training provided to employees. Option B is not necessarily true as informal work rules can differ from company to company, and it may not always benefit senior employees. Option D is not true as leaving the firm for other jobs can mean that senior employees may face pay cuts.

Internal Labor Markets Benefit Senior Employees By