标题：Factor substitution and labor market friction in the United States: 1948–2010
作者：Jiang M.; Shideler J.; Wang Y.
作者机构：[Jiang, M] Shandong University, Jinan, China;[ Shideler, J] Claremont Graduate University, Claremont, United States;[ Wang, Y] University of Internati 更多
通讯作者地址：[Jiang, M] School of Economics, Shandong UniversityChina;
关键词：Elasticity of substitution; labor market friction; technological progress
摘要：We re-estimate the capital-labor elasticity of substitution and the biased factor-augmenting technological progress using a system approach for the aggregate U.S. economy from 1948 to 2010. Due to (i) the significant impacts of labor market dynamics on economic growth and (ii) the fundamental tension between the short-run data that are available and the long-run parameter that is required in the estimation process, we incorporate labor market friction into a supply-side system to re-estimate these important growth parameters and to explore their sensitivity to the incorporation of labor market friction. Our estimation obtains a significantly smaller-than-unity elasticity of substitution. This result is consistent with labor input measured along the extensive and intensive margin, and in both competitive and imperfect labor markets. Technological progress tends to be purely labor-augmenting, with the average growth rate around 2% per year. These findings are robust to alternatively constructed data sets and different estimation strategies. © 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.