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How Robust Is the Capital-Skill Complementarity Hypothesis?

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Author Info
Bergstrom, Villy
Panas, Epaminondas E
Abstract

This paper investigates the relation between substitution possibilities in manufacturing production between capital and two labor inputs, blue collar and white collar workers. Griliches found in 1969 that unskilled.labor was more easily substituted for by capital than skilled labor. Griliches called this capital-skill complementarity. The capital-skill complementarity hypothesis has implications for the aggregation of labor inputs as well as for employment of labor categories and income distribution between factors. This paper investigates the robustness of the capital-skill complementarity hypothesis on Swedish data by varying model assumptions concerning economies of scale and technological growth. Copyright 1992 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 74 (1992)
Issue (Month): 3 (August)
Pages: 540-46
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Handle: RePEc:tpr:restat:v:74:y:1992:i:3:p:540-46

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  1. Chris Papageorgiou & Fidel Pérez Sebastián & John Duffy, 2002. "Capital-Skill Complementarity? Evidence From A Panel Of Countries," Working Papers. Serie AD 2002-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
  2. Rainald Borck & Marco Caliendo & Viktor Steiner, 2005. "Fiscal Competition and the Composition of Public Spending : Theory and Evidence," Discussion Papers of DIW Berlin 528, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Koebel, Bertrand M. & Falk, Martin & Laisney, Francois, 2000. "Imposing and testing curvature conditions on a Box-Cox function," ZEW Discussion Papers 00-70, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  4. Rainald Borck, 2005. "Fiscal Competition, Capital-Skill Complementarity, and the Composition of Public Spending," Discussion Papers of DIW Berlin 504, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  5. Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute. [Downloadable!]
  6. Frondel, Manuel & Schmidt, Christoph M., 2001. "Rejecting capital-skill complementarity at all costs," ZEW Discussion Papers 01-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  7. 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:
  8. Alberto Behar, 2005. "Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa," Economics Series Working Papers 244, University of Oxford, Department of Economics. [Downloadable!]
  9. 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!]
  10. Domeij, David & Ljungqvist, Lars, 2006. "Wage Structure and Public Sector Employment: Sweden versus the United States 1970-2002," CEPR Discussion Papers 5921, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. John Fender & Ping Wang, 2000. "Educational Policy and Skill Heterogeneity with Credit Market Imperfections," Working Papers 0021, Department of Economics, Vanderbilt University. [Downloadable!]
  12. Chris Papageorgiou & Viera Chmelarova, . "Nonlinearities in Capital-Skill Complementarity," Departmental Working Papers 2003-07, Department of Economics, Louisiana State University. [Downloadable!]
    Other versions:
  13. 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!]
  14. Lucia Foster, 1999. "Employment Adjustment Costs and Establishment Characteristics," Working Papers 99-15, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  15. Lindquist, Matthew J., 2005. "Capital-Skill Complementarity and Inequality in Sweden," Working Paper Series 2/2005, Swedish Institute for Social Research. [Downloadable!]
    Other versions:
  16. Lucia Foster, 1999. "On The Sources And Size Of Employment Adjustment Costs," Working Papers 99-7, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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