A theory of factor allocation and plant size

Thomas Holmes () and Matthew Mitchell

RAND Journal of Economics, 2008, vol. 39, issue 2, 329-351

Abstract: This article develops a theory of how capital, skilled labor, and unskilled labor interact at the plant level. The theory has implications for the relationship between factor allocation and plant size and 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.

Date: 2008
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Citations: View citations in EconPapers (16)

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https://doi.org/10.1111/j.0741-6261.2008.00017.x

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Working Paper: A theory of factor allocation and plant size (2003)
Working Paper: A Theory of Factor Allocation and Plant Size (2003)
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