The effect of labor supply changes on output: Empirical evidence from US industries

Basit Öğe Kaydı
dc.contributor.authorAkay, Gökhan H.
dc.contributor.authorDoğan, Can
dc.date.accessioned2021-05-15T12:40:59Z
dc.date.available2021-05-15T12:40:59Z
dc.date.issued2013
dc.departmentİşletme Fakültesi, Uluslararası Ticaret Bölümüen_US
dc.description.abstractIn this paper we examine the relationship between labor supply and industry-level output in the context of the specific factors model. Jones (Trade, balance of payment and growth: essays in honor of Charles P. Kindleberger, Amsterdam, pp 3-21, 1971) shows that a rise in the amount of labor in the economy will increase the output in all industries. We empirically show which industry output is predicted to expand more when the size of labor force grows. Unlike the commonly used Rybczynski Theorem (Economica 22:336-341, 1955) of the Heckscher-Ohlin model, the specific factors model shows that a comparison both of labor intensities and labor demand elasticities plays an important role in determining which output expands relatively more when the size of labor force grows. For this purpose, we illustrate the importance of the parameters of the model in determining how changes in the labor supply affect the output change, with special reference to elasticities of substitution in production. We estimate the elasticity of substitution by using CES production function and show how these estimates describe the general equilibrium of production with one mobile factor (labor) and 25 industries of the US economy using data for 1979-2001. We show that the increase in the supply of labor raise output in all industries, but the magnitudes of the increases in some industries are more than others depending on the value of the elasticity of substitution along with factor intensities between industries. The largest output effect occurs for educational, health care and social service, where a 1 % supply of labor increase would raise output 10.5 %. However, the growth in the labor supply has a small impact on output growth in the range of 0.1-0.6 % in agriculture, petroleum, coal product and finance and insurance industries.en_US
dc.identifier.doi10.1007/s11123-012-0290-2
dc.identifier.endpage130en_US
dc.identifier.issn0895-562X
dc.identifier.issn1573-0441
dc.identifier.issue2en_US
dc.identifier.scopus2-s2.0-84874565974
dc.identifier.scopusqualityQ1
dc.identifier.startpage123en_US
dc.identifier.urihttps://doi.org/10.1007/s11123-012-0290-2
dc.identifier.urihttps://hdl.handle.net/20.500.12939/724
dc.identifier.volume39en_US
dc.identifier.wosWOS:000315578500003
dc.identifier.wosqualityQ1
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.institutionauthorAkay, Gökhan H.
dc.language.isoen
dc.publisherSpringeren_US
dc.relation.ispartofJournal of Productivity Analysis
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectSpecific Factors Modelen_US
dc.subjectOutput Changeen_US
dc.subjectFactor Intensityen_US
dc.subjectElasticity Of Substitutionen_US
dc.titleThe effect of labor supply changes on output: Empirical evidence from US industries
dc.typeArticle

Dosyalar

Koleksiyon

WoS İndeksli Yayınlar Koleksiyonu
Scopus İndeksli Yayınlar Koleksiyonu
Uluslararası Ticaret Bölümü Koleksiyonu