The employment elasticity in manufacturing: a comment on Mazumdar

Jesus Felipe () and Grace C. Sipin

Cambridge Journal of Economics, 2005, vol. 29, issue 4, 659-664

Abstract: We show that Mazumdar's recently proposed methods for estimating the elasticity of the wage bill with respect to output growth, and for decomposing the growth rate of the wage rate into an output effect, an employment effect, and a price effect, are problematic. The decomposition proposed is a tautology because it can be equally derived from an accounting identity. Likewise, we show that the alleged elasticity of the wage bill with respect to output growth has to take on a value of unity by definition. Copyright 2005, Oxford University Press.

Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/cje/bei037 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:cambje:v:29:y:2005:i:4:p:659-664

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Cambridge Journal of Economics is currently edited by Jacqui Lagrue

More articles in Cambridge Journal of Economics from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().