Trenczek, Jan; Wacker, Konstantin - 2023 - This version: September 28, 2023
, the literature examining this type of labor misallocation has assumed a Cobb-Douglas production function. Our paper … substitutable than Cobb-Douglas assumes. Our counterfactual results indicate that human capital misallocation can explain … approximately 15% of output per worker variation across countries, which is substantially less than under a Cobb-Douglas …