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Capital-Skill Complementarity in West German Manufacturing

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Author Info
FitzRoy, Felix
Funke, Michael

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Abstract

Capital-skill complementarity is tested for two different definitions of skill using data from 32 West German manufacturing industries from 1975-1990. Using the Kmenta approximation for the CES function provides strong support for complementarity between white collar workers and capital. On the other hand, when "skill" is defined as skilled white collar and blue collar workers, we find essentially no evidence for complementarity. This surprising result suggests that the official classification of skilled production workers does not capture the planning activity most complementary to increasing capital intensity and technological progress.

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Publisher Info
Article provided by Springer in its journal Empirical Economics.

Volume (Year): 20 (1995)
Issue (Month): 4 ()
Pages: 651-65
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Handle: RePEc:spr:empeco:v:20:y:1995:i:4:p:651-65

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  1. Katja Gerling, 2000. "Subsidization and Structural Change in Eastern German Transition: Did Economic Policy Meet Its Objectives?," Kiel Working Papers 998, Kiel Institute for the World Economy. [Downloadable!]
  2. Philippe Azkenazy & Eva Moreno, 2004. "The impact of technological and organizational changes on labor flows. Evidence on French establishments," DELTA Working Papers 2004-25, DELTA (Ecole normale supérieure). [Downloadable!]
  3. Eva, MORENO-GALBIS & Henri R., SNEESSENS, 2004. "Low-Skilled Unemployment, Capital-Skill Complementarity and Embodied Technical Progress," Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper 2004025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  4. Philippe, ASKENAZY & Eva, MORENO-GALBIS, 2004. "The impact of technological and organizatioanl changes on labor flows. Evidence on French establishments," Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper 2004031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  5. Falk, Martin & Koebel, Bertrand, 1999. "Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour," ZEW Discussion Papers 99-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Puhani, Patrick A., 2001. "Wage rigidities in Western Germany? : Microeconometric evidence from the 1990s," ZEW Discussion Papers 01-36, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  7. Fitzenberger, Bernd & Franz, Wolfgang, 1997. "Flexibilität der qualifikatorischen Lohnstruktur und Lastverteilung der Arbeitslosigkeit: Eine ökonometrische Analyse für Westdeutschland," ZEW Discussion Papers 97-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. Falk, Martin & Koebel, Bertrand, 2000. "A dynamic heterogeneous labour demand model for German manufacturing," ZEW Discussion Papers 00-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  9. Eva, MORENO-GALBIS, 2004. "Unemployment and Endogenous Growth with Capital-Skill Complementarity," Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper 2004001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  10. Steiner, Viktor & Mohr, Robert, 1998. "Industrial change, stability of relative earnings, and substitution of unskilled labor in West-Germany," ZEW Discussion Papers 98-22, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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