Present an economic argument to explain why firms often have mandatory retirement (where allowed by law).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.
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