000 03756cam a22003017 4500
001 w0162
003 NBER
005 20211020115532.0
006 m o d
007 cr cnu||||||||
008 210910s1977 mau fo 000 0 eng d
100 1 _aRosen, Sherwin.
_919741
245 1 0 _aLabor Quality, the Demand for Skill, and Market Selection /
_cSherwin Rosen.
260 _aCambridge, Mass.
_bNational Bureau of Economic Research
_c1977.
300 _a1 online resource:
_billustrations (black and white);
490 1 _aNBER working paper series
_vno. w0162
500 _a1977.
520 3 _aThis paper investigates some alternative definitions of labor for productivity and demand analysis. The paper is organized as follows: Section II considers the organization of work activities in a simple fixed coefficient technology in the presence of comparative advantage among various classes of workers. Assuming that the number of independent productive activities exceeds the number of comparative advantage classes, an application of the envelope theorem shows the derivation from first principles of a neoclassical production function with input dimension (the number of workers of each type) smaller than the engineering technology(the number of activities). This is the basic result illustrating that occupational classifications depend on both the technology and the distribution of skills (factor supplies) in the working population, a fact that may be relevant to international and other cross-sectional differences in productivity and the demand for labor. The situation is reversed in section III, which treats the case where the number of worker classifications exceeds the number of production activities. In this case the micro-technology cannot be reduced below the basic set of work activities one starts with, and within these categories labor can be aggregated according to efficiency units. However, the nature of factor endowments in economies of this sort is rather different than in the neoclassical model, and leads to an output transformation function that has all the neoclassical properties. This result is reminiscent of an example of Houthakker (also, see Sato) who also obtained smooth neoclassical behavioral functions from underlying distributional phenomena. Section IV examines the characteristics-factor approach to labor aggregation and relates it to the results in section III, noting an inherent difficulty arising from selectivity of various ability groups of workers among work activities due to comparative advantage. In effect, the existence of rent destroys the possibility of simple linear aggregation. Finally, section, indicates some problems with applying the theory of marriage directly to labor demand. These issues become most interesting when there are incomplete markets that limit the gains from fully exploiting comparative advantage, due to transactions costs. The results are limited, but some examples show that any predictions concerning positive or negative assortive matching of workers depends not only on the correlation of talents among members of the work force, but also on the nature of technology and the distribution of demands for various outputs.
530 _aHardcopy version available to institutional subscribers
538 _aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538 _aMode of access: World Wide Web.
588 0 _aPrint version record
710 2 _aNational Bureau of Economic Research.
830 0 _aWorking Paper Series (National Bureau of Economic Research)
_vno. w0162.
856 4 0 _uhttps://www.nber.org/papers/w0162
856 _yAcceso en lĂ­nea al DOI
_uhttp://dx.doi.org/10.3386/w0162
942 _2ddc
_cW-PAPER
999 _c348444
_d307006