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Is There Evidence for a Marginalist Demand for Labour?

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  • Michl, Thomas R

Abstract

This paper presents estimates of the fixed-output elasticity of demand for production worker hours in U.S. manufacturing tha t are unsupportive of the neoclassical theory of labor demand. Evalua ting the elasticity of labor demand from the coefficient on product w ages in an employment function, it is shown that the consensus findin g of significant inverse wage-employment relationship at given output levels is not robust with respect to alternative price and output da ta or a specification of the employment equation which allows for dec lining rates of technical progress. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Michl, Thomas R, 1987. "Is There Evidence for a Marginalist Demand for Labour?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 11(4), pages 361-373, December.
    • Handle: RePEc:oup:cambje:v:11:y:1987:i:4:p:361-73
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    Cited by:

    1. Daniele Tavani & Luca Zamparelli, 2017. "Endogenous Technical Change In Alternative Theories Of Growth And Distribution," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1272-1303, December.
    2. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.

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