Labour market participants’ competitiveness assessment based on latent variables theory

Abstract

The article suggests innovative model for assessment of labour market subjects’ competitiveness, or successfulness. The authors state that general complex indicator for individual competitiveness within the labour market cannot be identified. Instead, precise enough assessment of such competitiveness can be based on some variables, though different for in-house and external labour market. The model of latent variables’ assessment based on Rasch’s method was selected as the base for the suggested method. The assessment model gives unbiased generalized values of subjects’ competitiveness on the linear non-dimensional scale based on the partial estimates of the selected criteria. The free choice of these criteria allows the model’s appliance for various labour market segments. The article demonstrates the mathematical grounding for the model; methodic of the assessment criteria selection; the way of assessment performance using MS Excel. It also analyses the features of the obtained estimates and shows their comparison with the estimates obtained by traditional methods. The model suggested by the authors can introduce any quantitative parameter of competitiveness as a variable after analysis of the factors affecting it. The quantitative estimates of these factors become the model’s criteria, but the assessment precision does not alter.