Worker Attitudes and the Cost of Production: Hypothesis Tests in an Equilibrium Model

John Norsworthy and Craig A Zabala

Economic Inquiry, 1990, vol. 28, issue 1, 57-78

Abstract: This paper extends the application of neoclassical production theory to include the effects of worker attitudes on productivity and cost of production, using data for the U.S. automobile industry. Behavioral indicators of worker attitudes are imbedded in a standard four-input translog cost function. The coefficients of the imbedded function are determined in estimation of the cost function simultaneously with its share equation. Hypotheses concerning the effects of worker attitude on the cost function are tested, and the properties of the index of worker attitude that emerge from the estimation are examined. Copyright 1990 by Oxford University Press.

Date: 1990
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