Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34062 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2178
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper tests the pro-competitive effect of trade in the product and labor markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and workers' bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers' bargaining power in the mid-nineties. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers' bargaining power.
Subjects: 
workers' bargaining power
mark-ups
pro-competitive effect
JEL: 
C23
F16
J51
L13
Document Type: 
Working Paper

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