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Exports and Labour Demand: Searching for Functional Structure in Multi-Output Multi-Skill Technologies

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Author Info
Bertrand M. Koebel () (BETA-Thème, Louis Pasteur University, Strasbourg and IZA Bonn)
Abstract

In order to simplify the representation of a technological relationship between inputs and outputs, a production unit’s technology must typically satisfy some restrictive conditions, some of them being well known in the literature. This paper presents new results for aggregating labour inputs and outputs, in terms of restrictions on elasticities of scale and substitution. These conditions are then empirically investigated, in a framework that is flexible and does not lose its flexibility after separability being imposed. The empirical findings of the exact approach to aggregation are found to be rather pessimistic on the possibility to provide a simplified representation.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1672.

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Length: 28 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1672

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Related research
Keywords: aggregation; separability; flexibility; exports; labour demand; Box-Cox; system serial correlation;

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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  1. Bernd Fitzenberger & Karsten Kohn, 2006. "Skill Wage Premia, Employment, and Cohort Effects: Are Workers in Germany All of the Same Type?," IZA Discussion Papers 2185, Institute for the Study of Labor (IZA). [Downloadable!]
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