Filtering by Race and Education in the U.S. Manufacturing Sector: Constant-Ratio Elasticity of Substitution Evidence

1976 ◽  
Vol 58 (2) ◽  
pp. 148 ◽  
Author(s):  
Daniel T. Dick ◽  
Marshall H. Medoff
Keyword(s):  
Manufacturing Sector ◽  
Elasticity Of Substitution ◽  
Constant Ratio ◽  
Race And Education ◽  
The U.S

scholarly journals Micro Data and Macro Technology

Econometrica ◽  
2021 ◽  
Vol 89 (2) ◽  
pp. 703-732
Author(s):  
Ezra Oberfield ◽  
Devesh Raval
Keyword(s):  
Cross Section ◽  
Technical Change ◽  
Capital Accumulation ◽  
Manufacturing Sector ◽  
Elasticity Of Substitution ◽  
Relative Importance ◽  
Micro Data ◽  
The Cross ◽  
Labor's Share ◽  
The U.S

We develop a framework to estimate the aggregate capital‐labor elasticity of substitution by aggregating the actions of individual plants. The aggregate elasticity reflects substitution within plants and reallocation across plants; the extent of heterogeneity in capital intensities determines their relative importance. We use micro data on the cross‐section of plants to build up to the aggregate elasticity at a point in time. Interpreting our econometric estimates through the lens of several different models, we find that the aggregate elasticity for the U.S. manufacturing sector is in the range of 0.5–0.7, and has declined slightly since 1970. We use our estimates to measure the bias of technical change and assess the decline in labor's share of income in the U.S. manufacturing sector. Mechanisms that rely on changes in the relative supply of factors, such as an acceleration of capital accumulation, cannot account for the decline.

U.S. ELASTICITIES OF SUBSTITUTION AND FACTOR AUGMENTATION AT THE INDUSTRY LEVEL

2012 ◽  
Vol 17 (4) ◽  
pp. 861-897 ◽  
Author(s):  
Andrew T. Young
Keyword(s):  
Manufacturing Sector ◽  
Weighted Average ◽  
Value Added ◽  
The United States ◽  
Large Majority ◽  
Elasticity Of Substitution ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
First Order ◽  
Industry Level

We provide industry-level estimates of the elasticity of substitution (σ) between capital and labor in the United States. We also estimate rates of factor augmentation. Aggregate estimates are produced. Our empirical model comes from the first-order conditions associated with a constant–elasticity of substitution production function. Our data represent 35 industries at roughly the 2-digit SIC level, 1960–2005. We find that aggregate U.S. σ is likely less than 0.620. σ is likely less than unity for a large majority of individual industries. Evidence also suggests that aggregate σ is less than the value-added share-weighted average of industry σ's. Aggregate technical change appears to be net labor–augmenting. This also appears to be true for the large majority of individual industries, but several industries may be characterized by net capital augmentation. When industry-level elasticity estimates are mapped to model sectors, the manufacturing sector σ is lower than that of services; the investment sector σ is lower than that of consumption.

scholarly journals The Economic Underpinnings of the Drug Epidemic

2019 ◽  
Author(s):  
Nathan Seltzer
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Drug Overdose ◽  
Manufacturing Sector ◽  
State Level ◽  
Opioid Overdose ◽  
Transformative Change ◽  
Drug Deaths ◽  
Overdose Deaths ◽  
The U.S

U.S. labor markets have experienced transformative change over the past half century. Spurred on by global economic change, robotization, and the decline of labor unions, state labor markets have shifted away from an occupational regime dominated by the production of goods to one characterized by the provision of services. Prior studies have proposed that deterioration of employment opportunities may be associated with the rise of substance use disorders and drug overdose deaths, yet no clear link between changes in labor market dynamics in the U.S. manufacturing sector and drug overdose deaths has been established. Using restricted-use vital registration records between 1999-2017 that comprise over 700,000 drug deaths, I test two questions. First, what is the association between manufacturing decline and drug and opioid overdose mortality rates? Second, how much of the increase in these drug-related outcomes can be accounted for by manufacturing decline? The findings provide strong evidence that restructuring of the U.S. labor market has played an important upstream role in the current drug crisis. Up to 77,000 overdose deaths for men and up to 40,000 overdose deaths for women are attributable to the decline of state-level manufacturing over this nearly two-decade period. These results persist in models that adjust for other social, economic, and policy trends changing at the same time, including the supply of prescription opioids. Critically, the findings signal the value of policy interventions that aim to reduce persistent economic precarity experienced by individuals and communities, especially the economic strain placed upon the middle class.

The Direction of Wage Spillovers in Manufacturing

ILR Review ◽  
1982 ◽  
Vol 36 (1) ◽  
pp. 102-112 ◽  
Author(s):  
Susan Vroman
Keyword(s):  
Union Wage ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Traditional View ◽  
Model Specification ◽  
Wage Change ◽  
Empirical Results ◽  
Nonunion Wage ◽  
Data Period ◽  
The U.S

This study develops a model of wage behavior for both union and nonunion workers in the U.S. manufacturing sector and tests that model with separate union and nonunion wage-change series covering the period 1960 to 1978. The empirical results support the traditional view that union wage behavior influences or spills over into nonunion wage changes but not vice versa. These results are of particular interest because they contrast sharply with an earlier study by Flanagan that reported an opposite spillover effect. Flanagan's results are shown to be quite sensitive to the choice of model specification and data period.

DO UNIONS IMPACT EFFICIENCY?: EVIDENCE FROM THE U.S. MANUFACTURING SECTOR

2010 ◽  
Vol 29 (3) ◽  
pp. 431-440 ◽  
Author(s):  
PANDEJ CHINTRAKARN ◽  
YI-YI CHEN
Keyword(s):  
Manufacturing Sector ◽  
The U.S

PUBLIC INFRASTRUCTURE AND EXTERNALITIES IN U.S. MANUFACTURING: EVIDENCE FROM THE PRICE-AUGMENTING AIM COST FUNCTION

2012 ◽  
Vol 17 (7) ◽  
pp. 1367-1410
Author(s):  
Guohua Feng ◽  
Apostolos Serletis
Keyword(s):  
Cost Function ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Efficiency Index ◽  
Production Factor ◽  
Public Infrastructure ◽  
Ideal Model ◽  
Productivity Effect ◽  
Factor Effect ◽  
The U.S

In this paper, we propose a price-augmenting asymptotically ideal model (AIM) cost function to investigate the effects of public infrastructure on the performance of the U.S. manufacturing industry, using KLEMS data over the period from 1953 to 2001. In doing so, we make a distinction between the productivity effect and the production factor effect of public infrastructure. This distinction allows us to focus on the more interesting productivity effect by incorporating public infrastructure into the AIM cost function through the efficiency index. Moreover, we specify the growth rate of the efficiency index as a Box–Cox function of public infrastructure and a time trend, a proxy for other technology. The excellent flexibility of our price-augmenting AIM cost function offers many insights regarding the effects of infrastructure on the U.S. manufacturing sector.

scholarly journals Do firms park capital? Evidence from the U.S. manufacturing sector

2018 ◽  
Vol 15 (2) ◽  
pp. 194-202
Author(s):  
Paul Moon Sub Choi ◽  
Francis Joonsung Won
Keyword(s):  
Capital Expenditure ◽  
Manufacturing Sector ◽  
Moving Average ◽  
Cash Holdings ◽  
Positive Association ◽  
Demand For Money ◽  
Cost Of Carry ◽  
The Cost ◽  
Corporate Cash Holdings ◽  
The U.S

This study uses the “cost of carry” (CoC) measure to identify the motive for corporate cash holdings. Based on the historical, moving-average holdings of currency and liquid assets, the measure represents the net opportunity cost of corporate demand for money. This study finds that large manufacturing firms in the U.S. park their capital in short-term assets appealing to the agency motive for cash holdings. Because dividend-paying firms can choose to distribute their capital to equity shareholders when their investment opportunities are unfavorable, these firms might show a non-positive association between capital expenditure and the CoC measure, championing the transactions motive. Still, dividend-paying large firms exhibit an overall positive correlation, suggesting that they park their capital on the agency motive. A detailed literature review and discussions are followed.

scholarly journals ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE U.S. TOTAL MANUFACTURING SECTOR

1996 ◽  
Vol 34 (1) ◽  
pp. 43-56 ◽  
Author(s):  
M. Ishaq Nadiri ◽  
Ingmar R. Prucha
Keyword(s):  
Manufacturing Sector ◽  
Depreciation Rate ◽  
The U.S

The Impacts of Lower Natural Gas Prices on Jobs in the U.S. Manufacturing Sector

2019 ◽  
Vol 40 (01) ◽  
Author(s):  
Wayne Gray ◽  
Joshua Linn ◽  
Richard Morgenstern
Keyword(s):  
Natural Gas ◽  
Manufacturing Sector ◽  
Natural Gas Prices ◽  
The U.S
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