Statement 1: "A firm hiring using the 'career earnings' approach will always hire employees only for the lowest level positions, promote them quickly in the first few years and later pay them more than they could get elsewhere."

Statement 2: "One significant advantage of the 'career earnings' approach is that regular promotions late in employee careers give significant incentive to work harder."

Group of answer choices:

Statement 2 is true, but 1 is false

Statement 1 is true, but 2 is false

Both statements are false.

Both statements are true