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Skill Demand and Factor Substitution

Author

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  • Shadman-Mehta, Fatemeh
  • Sneessens, Henri

Abstract

The aim of this paper is to empirically evaluate the relative importance of the various factors likely to have influenced the demand for skilled and unskilled labour in France, over the period 1962-89. Our approach is macroeconomic, and we essentially deal with technology choice, that is factor productivity over the long run. We estimate a system of three equations, with a dynamic formulation of the error correction type. The main aim is to estimate price elasticities, and direct and cross partial elasticities of substitution between different factors, especially those related to skilled and unskilled labour.

Suggested Citation

  • Shadman-Mehta, Fatemeh & Sneessens, Henri, 1995. "Skill Demand and Factor Substitution," CEPR Discussion Papers 1279, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1279
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    Citations

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    Cited by:

    1. J. Ignacio Garcia-Perez, 2002. "Equilibrium search models: the role of the assumptions," Investigaciones Economicas, Fundación SEPI, vol. 26(2), pages 255-284, May.
    2. Koebel, Bertrand M. & Falk, Martin, 1999. "Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour," ZEW Discussion Papers 99-06, ZEW - Leibniz Centre for European Economic Research.
    3. Lips, Markus, 2003. "Feeding the World via Transfer Payments – A General Equilibrium Approach," Conference papers 331103, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Sneessens, Henri R., 1998. "Technological Bias and Unemployment: A Macroeconomic Perspective," LIDAM Discussion Papers IRES 1999024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Aug 1999.
    5. Falk, Martin & Koebel, Bertrand M., 1997. "The Demand of Heterogeneous Labour in Germany," ZEW Discussion Papers 97-28, ZEW - Leibniz Centre for European Economic Research.
    6. Ide Kearney, 1997. "Shifts in the Demand for Skilled Labour in the Irish Manufacturing Sector: 1979-1990," Papers WP083, Economic and Social Research Institute (ESRI).
    7. Draper, D.A.G., 2000. "Towards an econometric model for the Netherlands : Explaining unemployment," Other publications TiSEM 8d6f0572-d552-4ca2-9df3-6, Tilburg University, School of Economics and Management.
    8. Steiner, Viktor & Mohr, Robert, 1998. "Industrial change, stability of relative earnings, and substitution of unskilled labor in West-Germany," ZEW Discussion Papers 98-22, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Exdogenous Technical Progress; Shephard's Lemma; Skill Mismatch;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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