A platform for research: civil engineering, architecture and urbanism
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. (author)
1985
Article (Journal)
English
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
|