elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa ….s theorem to show that introducing human capital accumulation in the standard way does not resolve the puzzle. However, balanced … growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We …

Using U.S. manufacturing data, Griliches (1969) found evidence suggesting that capital equipment was more substitutable … for unskilled than skilled labor. Griliches formulated this finding as the capital-skill complementarity hypothesis. The … purpose of this study is to determine whether the capital-skill complementarity framework holds for Ghana manufacturing plants …

transfers over this period is taken into account. We show that the increase in capital's share of total income and the presence … of capital-entrepreneurial skill complementarity are two key features that help support the wages of ordinary workers as … the new technology diffuses. -- income inequality ; skill-biased technological change ; capital-skill complementarity …