Capital Skill Substitutability and the Labor Income Share: Identification Using the Morishima Elasticity of Substitution

GSTDTAP > 气候变化

	Capital Skill Substitutability and the Labor Income Share: Identification Using the Morishima Elasticity of Substitution
	[unavailable]
	2018-05-02
出版年	2018
语种	英语
国家	国际
领域	气候变化
英文摘要	A decline in labor income share alongside a drop in the relative price of capital occurs when the loss of income share due to a decrease in unskilled labor outweighs the income gained due to an increase in skilled labor. The relationship between a declining labor income share and a falling relative price of capital requires capital and labor to be gross substitutes at the aggregate level (i.e., σ__Agg>1). We argue that this restriction can be relaxed if we distinguish labor by skills and identify differential capital-labor substitutability across skill groups. Using the Morishima elasticity of substitution in a three-factor nested-CES production function, we analytically estimate the elasticity of substitution parameters between capital and skilled labor (ρ) and between capital and unskilled labor (σ). We then derive the necessary conditions for a decline in the labor income share based on ρ and σ, which does not require σ__Agg to be greater than unity. WORKING PAPER NO: 839
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来源平台	Asian Development Bank
文献类型	科技报告
条目标识符	http://119.78.100.173/C666/handle/2XK7JSWQ/235173
专题	气候变化
推荐引用方式 GB/T 7714	[unavailable]. Capital Skill Substitutability and the Labor Income Share: Identification Using the Morishima Elasticity of Substitution,2018.

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