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Capital-Skill Complementarity in West German Manufacturing Author info | Abstract | Publisher info | Download info | Related research | Statistics Felix Fitzroy
Michael Funke
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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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Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number
9408.
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Date of creation: Oct 1994Date of revision:
Handle: RePEc:san:crieff:9408Contact details of provider: Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL Phone: 01334 462420 Web page: http://www.st-and.ac.uk/%7Ewww_crieff/discpaps.html
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Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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