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dc.contributor.authorFrondel, Manuelen_US
dc.contributor.authorSchmidt, Christoph M.en_US
dc.date.accessioned2009-01-28T16:20:04Z-
dc.date.available2009-01-28T16:20:04Z-
dc.date.issued2001en_US
dc.identifier.urihttp://hdl.handle.net/10419/21172-
dc.description.abstractAny serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification – this is also the approach used by numerous studies analyzing the relative capital-skill complementarity hypothesis formulated by GRILICHES (1969). According to this hypothesis, the degree of substitutability between skilled labor and capital is lower than that for unskilled labor and capital. Yet, the results of empirical studies investigating this hypothesis are controversial. This paper offers a straightforward explanation: Using a translog approach reduces the issue of factor substitutability or complementarity to a question of cost shares. Our review of translog studies mentioned in HAMERMESH?s (1993) summary on the demand for heterogeneous labor demonstrates that this argument is empirically relevant – all these studies can be reconciled with each other on the basis of the cost-share argument.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 316en_US
dc.subject.jelD2en_US
dc.subject.jelC3en_US
dc.subject.ddc330en_US
dc.subject.keywordSubstitutabilityen_US
dc.subject.keywordTranslog Cost Functionen_US
dc.subject.stwFaktorsubstitutionen_US
dc.subject.stwSubstitutionselastizitäten_US
dc.subject.stwKapitalen_US
dc.subject.stwFacharbeiteren_US
dc.subject.stwKostenfunktionen_US
dc.subject.stwKostenstrukturen_US
dc.subject.stwTheorieen_US
dc.subject.stwWelten_US
dc.subject.stwTranslog Modellen_US
dc.subject.stwcost sharesen_US
dc.titleRejecting Capital-Skill Complementarity at all Costsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn335353487en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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