Some Determinants of the Returns to Manufacturing Industries
A basic premise of this empirical research is that the returns to an industry depend on the size of its capital stock. It follows that some of the differences in the measured rates of return among industries are explained by the omission of certain components of their “true” capital. An important empirical task is to determine and, if possible, to measure all of the components of an industry’s capital stock. The data used in this study are from two sources; the 1963 Census of Manufactures and the employment turnover statistics of the Bureau of Labor Statistics. The reasons for using the former in a study of this nature are obvious, and we shall soon see the relevance of the labor force turnover figures.
KeywordsConcentration Ratio Wage Rate Annual Earning Intangible Capital Specific Human Capital
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