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Outsourcing of services, imported materials and the demand for heterogeneous labour : an application of a generalised box-cox function

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Author Info
Falk, Martin
Koebel, Bertrand M.

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Abstract

This paper examines the effects that purchased services and imported intermediate materials have on the labour demand for different skills in the manufacturing sector. We derive and estimate a factor demand system based on the generalised Box-Cox cost function nesting both the normalised quadratic and the translog functional form. We find that the impacts of output and capital growth are more important in explaining the demand for heterogeneous labour than substitution effects between labour and non-labour inputs. Similarly, the increasing use of both imported materials and purchased services is rather a consequence of output growth than input substitution.

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File URL: http://hdl.handle.net/10419/24399
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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 00-51.

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Date of creation: 2000
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Handle: RePEc:zbw:zewdip:5335

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Related research
Keywords: Outsourcing of services; intermediate imports; heterogeneous labour; Box-Cox cost function;

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Find related papers by JEL classification:
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Tombazos, Christis G, 1999. "The Role of Imports in Expanding the Demand Gap between Skilled and Unskilled Labour in the US," Applied Economics, Taylor and Francis Journals, vol. 31(4), pages 509-16, April. [Downloadable!] (restricted)
  2. Philippe Aghion & Eve Caroli & Cecilia Garcia-Penalosa, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December. [Downloadable!] (restricted)
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  3. Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-45, December. [Downloadable!] (restricted)
  4. Falk, Martin & Koebel, Bertrand, 2001. "A Dynamic Heterogeneous Labour Demand Model for German Manufacturing," Applied Economics, Taylor and Francis Journals, vol. 33(3), pages 339-48, February. [Downloadable!] (restricted)
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  5. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January. [Downloadable!] (restricted)
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  6. Paul, Catherine J Morrison & Siegel, Donald S, 2001. " The Impacts of Technology, Trade and Outsourcing on Employment and Labor Composition," Scandinavian Journal of Economics, Blackwell Publishing, vol. 103(2), pages 241-64, June. [Downloadable!] (restricted)
  7. Fixler, Dennis J. & Siegel, Donald, 1999. "Outsourcing and productivity growth in services," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 177-194, June. [Downloadable!] (restricted)
  8. Gebhardt Flaig & Horst Rottmann, 2001. "Input Demand and the Short- and Long-Run Employment Thresholds: An Empirical Analysis for the German Manufacturing Sector," German Economic Review, Blackwell Publishing, vol. 2(4), pages 367-384, November. [Downloadable!] (restricted)
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  9. Aw, Bee Yan & Roberts, Mark J, 1985. "The Role of Imports from the Newly-industrializing Countries in U.S. Production," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 108-17, February. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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!]
  2. Lööf, Hans, 2004. "A Comparative Perspective on Innovation and Productivity in Manufacturing and Services," Working Paper Series in Economics and Institutions of Innovation 1, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  3. R. Antonietti & D. Antonioli, 2007. "Production offshoring and the skill composition of Italian manufacturing firms A quasi-experimental analysis," Working Papers 594, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
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