Table 14. Model selection between conditional labor demand functions from Cobb-Douglas, CES and Leontief production functions based on the root mean squared error (RMSE) method Code Activity RMSE of: Model of best fit Cobb-Douglas CES Leontief 1 Agriculture and forestry 0.026 0.010 0.027 CES 2 Fishing 0.061 0.028 0.058 CES 3 Mining and quarrying 0.101 0.013 0.154 CES 4 Manufacturing 0.019 0.018 0.018 Leontief Electricity, gas and water 5 supply 0.059 0.027 0.074 CES 6 Construction 0.130 0.030 0.122 CES Wholesale and retail trade; repair of motor vehicles, motor cycles and personal 7 and household goods 0.110 0.007 0.159 CES 8 Hotels, restaurant 0.099 0.007 0.092 CES Transport, storage and 9 communications 0.035 0.010 0.043 CES 10 Financial intermediation 0.132 0.105 0.154 CES Scientific activities and 11 technology 0.051 0.008 0.063 CES Real estate, renting and 12 business activities 0.028 0.021 0.038 CES Public administration and defense; compulsory social 13 security 0.046 0.007 0.044 CES 14 Education and training 0.044 0.022 0.040 CES 15 Health and social work 0.070 0.025 0.066 CES Recreational, cultural and 16 sporting activities 0.039 0.031 0.036 CES Activities of Party and of 17 membership organizations 0.077 0.012 0.084 CES Community, social and personal service activities and private household with 18 employed persons 0.048 0.022 0.053 CES 19 GDP 0.017 0.007 0.016 CES Table 15. Estimation of wage determination equations1, 2 Code Activity Dependent variables: nominal wage real wage real state wage real min real min wage CPI wage real min wage
Table 14. Model selection between conditional labor demand functions from Cobb-Douglas, CES and Leontief production functions based on the root mean squared error (RMSE) method Code Activity RMSE of: Model of best fit Cobb-Douglas CES Leontief 1 Agriculture and forestry 0.026 0.010 0.027 CES 2 Fishing 0.061 0.028 0.058 CES 3 Mining and quarrying 0.101 0.013 0.154 CES 4 Manufacturing 0.019 0.018 0.018 Leontief 5 Electricity, gas and water supply 0.059 0.027 0.074 CES 6 Construction 0.130 0.030 0.122 CES 7 Wholesale and retail trade; repair of motor vehicles, motor cycles and personal and household goods 0.110 0.007 0.159 CES 8 Hotels, restaurant 0.099 0.007 0.092 CES 9 Transport, storage and communications 0.035 0.010 0.043 CES 10 Financial intermediation 0.132 0.105 0.154 CES 11 Scientific activities and technology 0.051 0.008 0.063 CES 12 Real estate, renting and business activities 0.028 0.021 0.038 CES 13 Public administration and defense; compulsory social security 0.046 0.007 0.044 CES 14 Education and training 0.044 0.022 0.040 CES 15 Health and social work 0.070 0.025 0.066 CES 16 Recreational, cultural and sporting activities 0.039 0.031 0.036 CES 17 Activities of Party and of membership organizations 0.077 0.012 0.084 CES 18 Community, social and personal service activities and private household with employed persons 0.048 0.022 0.053 CES 19 GDP 0.017 0.007 0.016 CES Table 15. Estimation of wage determination equations1, 2 Code Activity Dependent variables: nominal wage real wage real state wage real min wage CPI real min wage real min wage