Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30150
Authors: 
Bjørnstad, Roger
Kalstad, Kjartan Øren
Year of Publication: 
2010
Series/Report no.: 
Economics Discussion Papers 2010-13
Abstract: 
Although coordination of wage bargaining probably affects entry barriers and competition in product markets, research on price determination has typically not considered such factors. In this paper the price markup depends on coordination and is estimated on a panel of 15 OECD countries. The estimates show that consumer prices may be as much as 21 percent higher in coordinated compared to uncoordinated countries, solely due to the effect of coordination on the price markup. Since coordination has a dampening effect on wages, this may explain why many researchers have been unable to find any clear effect of coordination on unemployment.
Subjects: 
Imperfect competition model
price markup
labor market institutions
unemployment
panel data model
JEL: 
C23
E31
J51
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Working Paper

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