The paper furthers the neoclassical theory of earnings inequality. The inequality multiplier is derived as the amount by which inequality in skills must be multiplied to yield earnings inequality. Neutral technological change and the real interest rate affect inequality by changing capital per worker. The effect of capital per worker on the inequality multiplier is related to skill differential...

We propose using a real options framework to quantify the financial value of cross training. We model the investment decision in cross training as a series of European call options with the same exercise price but with different maturity dates. We use the Black-Scholes formula and the binomial tree approach to find the value of having the option to cross train. A case study shows the applicatio...

This paper presents a multi-objective Particle Swarm Optimization (PSO) algorithm for worker assignment and mixed-model assembly line balancing problem when task times depend on the worker’s skill level. The objectives of this model are minimization of the number of stations (equivalent to the maximization of the weighted line efficiency), minimization of the weighted smoothness index and minim...

In this paper, we present a single-shift workforce planning tool: the Head Count Allocation Solver (HCA) for a high volume manufacturing facility with several machine groups at each operation. Each machine group at a given operation requires a number of workers with specified skill levels and qualifications, and each qualified worker has a preference for operations and machine groups based on h...

Like many transition economies, Slovenia is undergoing profound changes in the workings of the labor market with potentially greater flexibility in terms of both wage and employment adjustment. We investigate the impact of the changing labor market for Slovenia using unique longitudinal matched employer-employee data that permits measurement of employment transitions and wages for workers and l...

In this work we define the utility of having a certain skill in an (OLM), and we propose that this utility is strongly correlated with the level of expertise of a given worker. However, the actual level of expertise for a given skill and a given worker is both latent and dynamic. What is observable is a series of characteristics that are intuitively correlated with the level of expertise of a g...

In labor markets with worker and firm heterogeneity, the matching between firms and workers may be assortative, meaning that the most productive workers and firms team up. We investigate this with longitudinal population-wide matched employer-employee data from Portugal. Using dynamic panel data methods, we quantify a firm-specific productivity term for each firm, and we relate this to the skil...

recently, most of firms are encouraging to employ informal labour force for reduction of their costs, in order to improve their competitiveness in global markets. these sorts of employees due to decrease labour expenses, thus help to the firm competitiveness, but little training and skill of them decreases competitiveness of firm in global markets. this article studies the effect of flexibility...