Aum, Sangmin; Shin, Yongseok - National Bureau of Economic Research - 2024
divide capital into equipment and software, as they may interact with labor in different ways. Our estimation shows that … equipment and labor are complements (elasticity 0.6), consistent with other micro-level estimates, but software and labor are … software improves, labor shares fall within firms because of factor substitution and endogenously rising markups. In addition …