Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21172
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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 displaycomplementarity as well as substitutability. The standard approach reflecting this idea is atranslog specification – this is also the approach used by numerous studies analyzing therelative capital-skill complementarity hypothesis formulated by GRILICHES (1969).According to this hypothesis, the degree of substitutability between skilled labor and capitalis lower than that for unskilled labor and capital. Yet, the results of empirical studiesinvestigating this hypothesis are controversial. This paper offers a straightforwardexplanation: Using a translog approach reduces the issue of factor substitutability orcomplementarity to a question of cost shares. Our review of translog studies mentioned inHAMERMESH?s (1993) summary on the demand for heterogeneous labor demonstrates thatthis argument is empirically relevant – all these studies can be reconciled with each other onthe basis of the cost-share argument.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA Discussion paper series |x316en_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.ppn843950625en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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