Work detail

The Elasticity of Substitution between Skilled and Unskilled Labor: //A Meta-Analysis

Author: Mgr. Ľubica Laslopová
Year: 2018 - winter
Leaders: doc. PhDr. Zuzana Havránková Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 93
Awards and prizes: M.A. with distinction from the Director of IES FSV UK for an extraordinarily good master diploma thesis.
Abstract: In this thesis we use meta-analytic methods to quantitatively summarize
empirical evidence on elasticity of substitution between skilled and unskilled
labor. Review is based on sample of 684 estimates from 78 studies. After
a brief overview of theoretical framework, estimation strategies and distribution
of the existing estimates, we test for publication bias. According to
regression-based tests for publication bias, we do not reject null hypothesis
of no publication bias in the existing literature. To explain heterogeneity
between the estimates, we use Bayesian Model Averaging. We find that
both real factors and research design influence resulting value of estimated
elasticity. Our synthetic estimates of the elasticity imply that skilled and
unskilled workers are imperfect substitutes in the long run, substitutability
in the short-run is mostly limited.


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