The Labour Input response to Permanent Changes in Output: Errors in Variables Econometrics Based on Panel Data

Erik Biorn and Tor Klette

Memorandum from Oslo University, Department of Economics

Abstract: Using panel data for the Norwegian manufacturing, we revisit " the increasing returns to scale puzzle" for labour input. We consider the response of the input of white collar workers, blue collar workers, and blue collar worker hours to permanent changes in output. Permanent and temporary changes in output are treated as latent variables within a GMM estimation procedure.

Keywords: LABOUR MARKET; DEMAND; EVALUATION (search for similar items in EconPapers)
JEL-codes: C13 C23 J23 (search for similar items in EconPapers)
Pages: 58 pages
Date: 1996
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:1996_014

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