Production-functions and the disaggregation of labor inputs in manufacturing plants

Citation

McQuaid R (1986) Production-functions and the disaggregation of labor inputs in manufacturing plants. Journal of Regional Science, 26 (3), pp. 595-603. https://doi.org/10.1111/j.1467-9787.1986.tb01062.x

Abstract
This paper investigates the assumption of homogeneous labor inputs underlying the production functions in many regional models. The results indicate that nonproduction and production labor within manufacturing plants are not strongly separable, and the homogeneous labor assumption is not therefore appropriate. Hence, regional models need to take this into account in order to give reliable results. Differences between industries provide useful additional insights into their labor and capital relationships.

Journal
Journal of Regional Science: Volume 26, Issue 3