Not Available for Download

The Employment Elasticity in Manufacturing: A Comment on Mazumdar

Posted: 29 Feb 2008  

E.C. Sipin

Independent

Jesus Felipe

Asian Development Bank

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.

Keywords: Accounting identity, Labour share

Suggested Citation

Sipin, E.C. and Felipe, Jesus, The Employment Elasticity in Manufacturing: A Comment on Mazumdar. Cambridge Journal of Economics, Vol. 29, Issue 4, pp. 659-664, 2005. Available at SSRN: https://ssrn.com/abstract=904478

E.C. Sipin

Independent

No Address Available

Jesus Felipe

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Paper statistics

Abstract Views
320