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Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers … perfectly competitive labor markets underlying this theory is relaxed, minimum wages can increase training of affected workers … standard theory of human capital …
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In the standard model of human capital with perfect labor markets general training. When labor market frictions compress the structure of wages in the general skills of their employees. The reason is that the distortion in the wage structure" turn technologically' general skills into specific'...
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