Elasticity of Substitution and Productivity, Capital and Skill Intensity Differences Across Firms
Posted: 6 May 2006
Abstract
This paper, instrumented with six theorems, shows that differences between firms in labor productivity, capital intensity and relative demand for skilled labor can be explained by differences in the substitution parameters between capital, skilled and unskilled labor in the presence of skill biased technical change.
Keywords: Elasticity of substitution, Labor productivity, Capital intensity and skill biased technical change
JEL Classification: D24, D21, J21, L11
Suggested Citation: Suggested Citation
Dupuy, Arnaud and de Grip, Andries, Elasticity of Substitution and Productivity, Capital and Skill Intensity Differences Across Firms. Economics Letters, Vol. 90, pp. 340-347, 2006, Available at SSRN: https://ssrn.com/abstract=899324
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