The use of RAS in manpower forecasting: A microeconomic approach

Abstract This paper deals with the use of RAS in manpower forecasting. The starting point is a microeconomic allocation model of the firm in which the optimal employment by education is determined. Two restricting hypotheses, dealing with the uniformity of wage changes and technologies over industries, are formulated. Several variants of the allocation model, differing with regard to accepting these hypotheses, are investigated. It is shown that these variants can all be rearranged to obtain the RAS structure. The performances of the RAS variants indicate the validity of the hypotheses. It is concluded that neither hypothesis can be rejected.