| The objective of this dissertation is to examine both theoretically and empirically the relative role of the own-product wage and variable labor intensity effects in the determination of labor demand and to investigate how the strength of these effects varies across US industries.;The wage rate and the vector of social variables affecting labor intensity (i.e., relative cost of job loss and intensity of supervision) are hypothesized to be inversely related to employment. Their effects, however, are stipulated to be weakest in core industries because of the relatively high presence of unions and the establishment of internal labor markets.;To investigate the extent to which these hypotheses are corroborated, an alternative demand function for labor is developed and estimated on all 143 3-digit US manufacturing industries. A sample of 100 industries is then split into primary and secondary segments according to their scores on Howell's first factor (1982). Using this empirical definition, a covariance analysis is performed in order to test for the heterogeneity of slopes between the two groups.;Overall, the wage and the social variables receive strong and relatively robust support. Their influence, however, does not appear to have effects in all industries. In particular, the results suggest that their effects tend to be strongest in secondary industries. |
