Question

We are all aware of the theoretical expected benefits of diversity. However, decisions are made by both expected marginal benefit of an actions compared to the expected marginal COSTS of actions, right?

What are the economic costs of diversity in the labor market?

Assume that you only speak Spanish and you are working with Bob, an English only speaking coworker, can you see any potential issues?

Answer 1

It's true for sure that decisions are taken or made when the expected marginal benefit of an actions outweigh when compared to the expected marginal costs of the actions.

It is also real that diversity helps in improving the benefits as we have diversity which also brings in divesrsity of thoughts, ideas, perspective and also organizations can get benefited from diverse decision making that possess a positive impact on the organization.

As per our given context, when i speak only spanish and you are working with the Bob, who speaks only in english( your co-worker) , absolutley there will be a potential issues in the communication, interaction, discussion on the important issues and also in sharing good suggestions or advces too. However, these challenges can be only near term and can be improved by translation mechanisms or by learning new languages. I can learn english and improve my skill as well. By hiring the best employee is not the topic of choice always. We may hire the top most candidate but if he or she is not good at attitude or won't get you good results this won't be a good thing to the company. Hence it's very important to hire a person who is good at attitude eventhough he or she is talented and also his/ her's work must meet our requirements.