Publication detail

Modeling Capital-Labor Substitution in the Era of Industry 4.0: A Sectoral Analysis of Czech Manufacturing

Authors: Pozdílek Martin | Pozdílková Alena | Hedvičáková Martina

Year: 2025

Type of publication: ostatní - článek ve sborníku

Name of source: Proceedings of the 43rd International Conference on Mathematical Methods in Economics (MME 2025)

Publisher name: Česká společnost pro operační výzkum

Place: Praha

Page from-to: nestránkováno

Titles:

Language	Name	Abstract	Keywords
eng	Modeling Capital-Labor Substitution in the Era of Industry 4.0: A Sectoral Analysis of Czech Manufacturing	The advent of Industry 4.0 is reshaping the labor, capital, and productivity landscape, posing both challenges and opportunities for economic policy and corporate strategy. A critical component of this transformation is understanding the extent to which labor is being substituted by capital—an insi- ght essential for informed managerial decisions and the creation of innovation-driven policies. This paper employs the Cobb-Douglas production function as a robust analytical framework to quantify this dynamic within the Czech manufacturing sector. Through correlation analysis and least squares estimation, we construct production functions for the industry as a whole and for its individual subsec- tors. The explanatory power of each model is evaluated through determination coefficients, providing a comparative perspective on capital-labor relationships across sectors. The findings offer data-driven insights into sectoral readiness for Industry 4.0 and implications for future investments in technology and workforce development.	Industry 4.0; Cobb-Douglas production function; manufacturing industry; labor, capital

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