Present an economic argument to explain why firms often have mandatory retirement (where allowed by law).© BrainMass Inc. brainmass.com March 4, 2021, 6:03 pm ad1c9bdddf
Economic analysis explains mandatory retirement based on the costs and benefits of hiring a work over a long-period of time. A company offers a pattern of wages and pension benefits that underpays its workers during early years, relative to their productivity, and overpays them during later years. This system- "deferred compensation"- provides incentives for ...
This job verifies why firms often have mandatory retirement.