A theory of factor allocation and plant size

Thomas Holmes () and Matthew Mitchell

No 325, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: In this paper we develop a theory of how factors interact at the plant level. The theory has implications for (1) the micro foundations for capital-skill complementarity, (2) the relationship between factor allocation and plant size, and (3) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation and factor price changes in the 19th and 20th centuries.

Keywords: Labor supply; Human capital (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (3)

Published in RAND Journal of Economics

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Related works:
Journal Article: A theory of factor allocation and plant size (2008)
Working Paper: A Theory of Factor Allocation and Plant Size (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:325

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