Suppose that after graduation you take a job with an employer that oers to pay full tuition for employees wishing to return to school to get an MBA degree during non-work hours. You are not required to continue working for the rm after getting your MBA.
a. What type of training is this? Who actually pays for it?
b. Assume that the worker can only gain skills from training or education (i.e., experience doesn't make a worker more productive). Draw a graph and show the benets and costs of the worker and/or the rm.
c. How would your answer change if the productivity of the worker was positively related to his experience?
Draw another graph and identify the benets and costs of the worker and/or the rm