Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/21172 
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dc.contributor.authorFrondel, Manuelen
dc.contributor.authorSchmidt, Christoph M.en
dc.date.accessioned2009-01-28T16:20:04Z-
dc.date.available2009-01-28T16:20:04Z-
dc.date.issued2001-
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x316en
dc.subject.jelD2en
dc.subject.jelC3en
dc.subject.ddc330en
dc.subject.keywordSubstitutabilityen
dc.subject.keywordTranslog Cost Functionen
dc.subject.stwFaktorsubstitutionen
dc.subject.stwSubstitutionselastizitäten
dc.subject.stwKapitalen
dc.subject.stwFacharbeiteren
dc.subject.stwKostenfunktionen
dc.subject.stwKostenstrukturen
dc.subject.stwTheorieen
dc.subject.stwWelten
dc.subject.stwTranslog Modellen
dc.subject.stwcost sharesen
dc.titleRejecting Capital-Skill Complementarity at all Costs-
dc.typeWorking Paperen
dc.identifier.ppn843950625en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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