| University | University of Glasgow (UOG) |
|---|---|
| Subject | Economics & Human Resource Management |
Economics of HRM
1. Provide a rigorous account of how employing both skilled and unskilled workers impact a firm’s production function and the consequent optimal skill ratio. Your answer should analyze both independent and interdependent skill mixes. Make sure all mathematical derivations are clearly shown, intuitive explanations are provided, and assumptions clearly laid out.
[Note: For convenience, you may assume that the production function for the interdependent case is Cobb–Douglas. You still need to cover in great detail its relevant properties].
2. Critically discuss how workers and firms are matched to each other in the labor market when there are many heterogeneous jobs offering different levels of risk to their workers. What is the impact of health and safety regulations on the utility of workers and on the profits of firms? Support your answer using the relevant empirical evidence.
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