Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Factor mobility, the elasticity of substitution and interregional wage differentials
Abstract The analysis of non-neutral technical change has emphasized the element of factor intensity while ignoring the impact of changes in the elasticity of factor substitution on interregional wage differentials. This paper provides a formalized treatment of changes in the elasticity of factor substitution on interregional wage-rate differentials in the case where labour mobility is present. The paper demonstrates that changes in this element of non-neutral technical change (unlike changes in the factor intensity element) will have differing impacts on regional wage-rates depending on the existing labour-capital ratio in the region. The paper concludes by relating changes in factor intensity to the elasticity of factor substitution to demonstrate the interaction of both elements on non-neutral technical change on regional wage rates.
Factor mobility, the elasticity of substitution and interregional wage differentials
Abstract The analysis of non-neutral technical change has emphasized the element of factor intensity while ignoring the impact of changes in the elasticity of factor substitution on interregional wage differentials. This paper provides a formalized treatment of changes in the elasticity of factor substitution on interregional wage-rate differentials in the case where labour mobility is present. The paper demonstrates that changes in this element of non-neutral technical change (unlike changes in the factor intensity element) will have differing impacts on regional wage-rates depending on the existing labour-capital ratio in the region. The paper concludes by relating changes in factor intensity to the elasticity of factor substitution to demonstrate the interaction of both elements on non-neutral technical change on regional wage rates.
Factor mobility, the elasticity of substitution and interregional wage differentials
Drugge, Sten E. (Autor:in)
1985
Aufsatz (Zeitschrift)
Englisch
ESTIMATING INTERREGIONAL UTILITY DIFFERENTIALS*
| Online Contents | 2011
INTERREGIONAL WAGE DISPARITIES, RELOCATION COSTS, AND LABOR MOBILITY IN CANADA
| Online Contents | 1998
Interregional Income Differentials and Migration: Their Interrelationships
| Taylor & Francis Verlag | 1988
Efficiency and interregional factor mobility: A note
| Online Contents | 1982