Productivity, Wage Kate and Relative Share of Workers in Manufacturing Industries

Workers in Manufacturing Industries M M Dadi The constant elasticity of substitution production function used by Arrow, Chenery, Minhas and Solow is definitely an improvement over the earlier production functions which assume either zero or unit elasticity of substitution between factors of production. A regression of labour productivity on wage rate, according to the authors, shows a highly significant correlation in manufacturing industries. The regression co-efficient