Abstract
In a previous paper (Griliches, 1967) I reported on a production function study based on per-establishment data from the 1958 Census of Manufactures, using states and two-digit industries as units of observation. Some of the major results of that study, summarized in Table I, were the finding of a small but significant rate of economies of scale and a demonstration of the importance of the quality of labor, measured by an occupational mix variable, as a determinant of differences in productivity. Since these results were the consequence of considerable experimentation and fishing, I noted at the end of that paper that they should interpreted as maintained hypotheses supported by data recently examined and to be tested further on additional data now being collected. This note is a report on a few such additional tests.
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