9422794 Kole Once predominately white and male, the American Labor force is composed increasingly of women, minorities, and foreign-born workers. Given the changing face of America's workforce, the objective of this project is to better understand how a divers workforce affects the activities of the firm. Specifically, a theoretical framework is developed to capture the impact of worker heterogeneity on organizations, and its testable implications are explored. The spirit of this research is that workforce diversity impacts organizations both within their boundaries and in the interface with customers. In both of these of settings, information is exchanged and miscommunications are assumed to lower the efficiency of the firm. This assumption of lower communication costs between similar-type agents formalizes worker heterogeneity as a form of human capital and facilitates the matching of a firm's distribution and customer populations to minimize delivery costs. ***
