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Capital-Skill Complementarity? Evidence from a Panel of Countries
Abstract
Since Griliches (1969), researchers have been intrigued by the idea that physical capital and skilled labor are more complementary than physical capital and unskilled labor. In this paper we consider the cross-country evidence for capital-skill complementarity using a time-series cross-section panel of 73 developed and less developed countries over a 25-year period. We focus on three empirical issues. First, what is the best specification of the aggregate production technology to address the capital-skill complementarity hypothesis? Second, how should we measure skilled labor? Finally, is there any cross-country evidence in support of the capital-skill complementarity hypothesis? Our main finding is that there is some empirical support for the capital-skill complementarity hypothesis in our macro panel data set.
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Cites
Initial conditions and moment restrictions in dynamic panel data models
Blundell, R., & Bond, S. (1998) · Journal of Econometrics · doi:10.1016/s0304-4076(98)00009-8 · Cited by 22,571
Initial conditions and moment restrictions in dynamic panel data models
Blundell, R., & Bond, S. (1995) · Working Paper Series · doi:10.1920/wp.ifs.1995.9517 · Cited by 14,755
The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988
Summers, R., & Heston, A. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937941 · Cited by 3,429
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Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2010) · Journal of Development Economics · doi:10.1016/j.jdeveco.2009.09.004 · Cited by 614
From Stagnation to Growth: Unified Growth Theory
Galor, O. (2005) · SSRN Electronic Journal · doi:10.2139/ssrn.651526 · Cited by 257
Changes in China’s wage structure
Ge, S., & Yang, D. T. (2014) · Journal of the European Economic Association · doi:10.1111/jeea.12072 · Cited by 177
When does AI pay off? AI-adoption intensity, complementary investments, and R&D strategy
Lee, Y. S., Kim, T., Choi, S., & Kim, W. (2022) · Technovation · doi:10.1016/j.technovation.2022.102590 · Cited by 141
Metadata
- Authors
- Duffy, J., Papageorgiou, C., & Perez-Sebastian, F.
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 2004-02
- Volume
- 86
- Issue
- 1
- Pages
- 327-344
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W2169297444
- Cited by
- 275
- References
- 3
- FWCI
- 15.01
- Type
- journal article
- Language
- en
- Open access
- closed
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- Duffy, J., Papageorgiou, C., & Perez-Sebastian, F. (2004). Capital-Skill Complementarity? Evidence from a Panel of Countries. Review of Economics and Statistics. https://doi.org/10.1162/003465304323023840
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