Procyclical labour productivity, labour effort and technology shocks : a study of injury rates in Swedish manufacturing 1970-1992
1998 (English)Report (Other academic)
In empirical studies the finding of procyclical average labour productivity is common. Two possible explanations to these results have been suggested in the literature: (1) labour hoarding/labour utilization, and (2) the Real Business Cycle productivity/technology shock explanation. This study tries to discriminate between these hypotheses by estimating the labor input coefficient in a production function regression with instrumental variables that are assumed to be unrelated to technology shocks, and, by using industrial injury rates as a proxy for unobserved labor effort. The latter approach follows previous work on U.S. data by Shea (1990). The results from panel data estimations for the Swedish industry are in favor of the labor hoarding/utilization hypothesis.
Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 1998. , 39 p.
Working paper, ISSN 0284-2904
IdentifiersURN: urn:nbn:se:uu:diva-2432ISBN: 99-2816210-7OAI: oai:DiVA.org:uu-2432DiVA: diva2:128693