conclusion
My approach for the first time connects profit maximization to work force composition given full information. Physical productivity, which dominates so much popular dis-cussion of this issue, matters, but demand-side factors are also important. Defining a firm’s optimal work force composition is nonsensical until at least the product’s char-acteristics, the extent to which different markets value them, and the extent to which groups inherently differ in their capacity to provide them are precisely defined.
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Osborne, E. The deceptively simple economics. J Labor Res 21, 463–475 (2000). https://doi.org/10.1007/s12122-000-1021-4
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DOI: https://doi.org/10.1007/s12122-000-1021-4