A theory of factor allocation and plant size

This article develops a theory of how capital, skilled labor, and unskilled labor interact at the plant level. The theory has implications for the relationship between factor allocation and plant size and the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation and factor price changes in the 19th and 20th centuries. Copyright (c) 2008, RAND.

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Year of publication:	2008
Authors:	Holmes, Thomas J. ; Mitchell, Matthew F.
Published in:	RAND Journal of Economics. - RAND, ISSN 0741-6261. - Vol. 39.2008, 2, p. 329-351
Publisher:	RAND

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005686519