Human capital is the stock of
expertise accumulated by a
worker to enhance future
productivity.
Firm-specific skills raise a
worker’s productivity only if he
or she works for that particular
firm.
General skills enhance
productivity in many jobs, not
just the current one.
Signalling is the decision to
undertake an action in order to
reveal inside information.
Screening is the process of
learning inside information by
observing differences in behaviour.
Discrimination is the different
treatment of people whose
relevant characteristics are
identical.
A closed shop is an agreement
that all a firm’s workers will be
members of a trade union.
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