Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20765
Authors: 
Dobbelaere, Sabien
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion paper series 1466
Abstract: 
This paper extends Hall's (1988) methodology to analyse imperfections in both the product and the labour market for firms in the Belgian manufacturing industry over the period 1988- 1995. We investigate the heterogeneity in price-cost mark-up and workers' bargaining power parameters among 18 sectors within the manufacturing industry as well as the relationship between both para meters. Using a sample of more than 7 000 firms, our GMM results indicate that ignoring imperfection in the labour market leads to an underestimation in the price -cost margin evaluated at perfect competition in the labour market. These findings are confirmed in the sectoral analysis. Sectors with higher workers' bargaining power typically show higher price-cost margins.
Subjects: 
efficient bargaining
bargaining power
market power
price -cost margins
JEL: 
J50
D21
C23
L13
Document Type: 
Working Paper

Files in This Item:
File
Size
453.35 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.