Job Assignment with Multivariate Skills

Publication Type  Preprints
Author  Stefanie Brilon
Year of Publication  2010
Issue  2010/25
Abstract  This paper analyzes the job assignment problem faced by a firm when workers’ skills are distributed along several dimensions and jobs require different skills to varying extent. I derive optimal assignment rules with and without slot constraints, and show that under certain circumstances workers may get promoted although in their new job they are expected to be less productive than in their old job. This can be interpreted as a version of the Peter Principle which states that workers get promoted up to their level of incompetence.
Publisher  Max Planck Institute for Research on Collective Goods
Place Published  Bonn
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Keywords  job assignment, worker selection, internal hiring, Peter Principle, slot constraints, multi-dimensional skills
JEL-Codes  M12, J0, J62, M51