Estimates of labour demand elasticities and elasticities of substitution using firm-level manufacturing data
AbstractUsing firm-level manufacturing data supplemented with wages from household survey data, this paper estimates translog cost functions to calculate labour demand elasticities and Allen Elasticities of Substitution between capital and four occupation types. It finds that own-price labour demand elasticities range from -0.56 to -0.8 , that capital and all occupation types are substitutes and that most occupation types are themselves complements.
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Bibliographic InfoPaper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU/CSSR Working Papers with number 098.
Date of creation: 2004
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