Legendre (F.) et Le Maitre (P.). – The Influence of Factors of Production Relative Cost on Capital-Labour Substitution in French Manufacturing. – Les cahiers de recherche de l'Adeps, Université
We investigate, from a panel of near 800 French manufacturing firms, usual specification of the labour demand with special attentions to process production heterogeneity. The empirical results obtained enable us to recall that, as long as labour demand is controlled by output level, it is not possible to display large sensitivity of labour demand to labour cost.