As an employer, Giselle wants productive employees who will stay with the firm for an extended period of time, so she should pay O less because human capital theory suggests better-paid employees work harder and stay longer. less because of the existence of compensating differentials. O more because human capital theory suggests better-paid employees work harder and stay longer. O more because of the existence of compensating differentials. O more because efficiency wage theory suggests that the employer will be able to secure more productive employees.

As employer, Giselle wants productive employees who will stay in firm for extended period of time, so she should pay more because human capital theory suggests the better-paid employees work harder and stay longer.

What is human capital?

Social scientists use the term "human capital" to describe character traits that are seen to be advantageous in the manufacturing process. It covers the education, well-being, and knowledge of the workforce. Individual income is significantly influenced by human capital. Investing in human capital can be done by businesses in a variety of ways, such as education and training, which will increase output and quality. Robert Gibbons, an economist at MIT, and Michael Waldman, an economist at Cornell University, introduced the new idea of task-specific human capital in the recent literature in 2004. Job assignment, pay dynamics, competition, promotion dynamics within organizations, etc. can all be affected by this idea. Since more investment in human capital results in greater output, it serves as a medium of production.

To learn more about human capital, visit:

https://brainly.com/question/14632161

#SPJ4