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Worker Attitudes and the Cost of Production: Hypothesis Tests in an Equilibrium Model

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  • Norsworthy, J R
  • Zabala, Craig A

Abstract

This paper extends the application of neoclassical production theory to include the effects of worker attitudes on productivity and cost of production, using data for the U.S. automobile industry. Behavioral indicators of worker attitudes are imbedded in a standard four-input translog cost function. The coefficients of the imbedded function are determined in estimation of the cost function simultaneously with its share equation. Hypotheses concerning the effects of worker attitude on the cost function are tested, and the properties of the index of worker attitude that emerge from the estimation are examined. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Norsworthy, J R & Zabala, Craig A, 1990. "Worker Attitudes and the Cost of Production: Hypothesis Tests in an Equilibrium Model," Economic Inquiry, Western Economic Association International, vol. 28(1), pages 57-78, January.
  • Handle: RePEc:oup:ecinqu:v:28:y:1990:i:1:p:57-78
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    Cited by:

    1. Susan J. linz & Linda K. Good & Patricia Huddleston, 2006. "Worker Morale in Russia: An Exploratory Study," William Davidson Institute Working Papers Series 816, William Davidson Institute at the University of Michigan.
    2. John Norsworthy & Show-Ling Jang, 1993. "Cost Function Estimation of Quality Change in Semiconductors," NBER Chapters, in: Price Measurements and Their Uses, National Bureau of Economic Research, Inc.
    3. Berg, Nathan, 2006. "Behavioral Labor Economics," MPRA Paper 26366, University Library of Munich, Germany.

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