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http://hdl.handle.net/10419/20765
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| Title: | | Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing  |
| Authors: | | Dobbelaere, Sabien |
| Issue Date: | | 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 |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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