Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35724
Authors: 
Henderson, Daniel J.
Year of Publication: 
2008
Series/Report no.: 
IZA discussion papers 3865
Abstract: 
This paper uses nonparametric kernel methods to construct observation-specific elasticities of substitution for a balanced panel of 73 developed and developing countries to examine the capital-skill complementarity hypothesis. The exercise shows some support for capital-skill complementarity, but the strength of the evidence depends upon the definition of skilled labor and the elasticity of substitution measure being used. The added flexibility of the nonparametric procedure is also able to uncover that the elasticities of substitution vary across countries, groups of countries and time periods.
Subjects: 
Capital-skill complementarity
elasticity of substitution
nonparametric kernel
stochastic dominance
JEL: 
C14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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