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In the model of job assignments in hierarchies, skill pays a higher premium in management and executives jobs (compared to production jobs) because higher skill
In the model of job assignments in hierarchies, skill pays a higher premium in management and executives jobs (compared to production jobs) because higher skill on an executive job raises performance on all jobs below it in the hierarchy. managers and executives control their own pay. production workers are less educated. placement at a higher level in the hierarchy signals skill or ability
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