Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108820
Authors: 
Amoroso, Sara
Melenberg, Bertrand
Plasmans, Joseph
Vancauteren, Mark
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5273
Abstract: 
This paper examines the interaction between productivity growth, firms' monopolistic market power, and workers' wage bargaining power. Our study contributes to several strands of literatures. First, we examine a monopolistic framework which accounts for wage bargaining. In addition to the other studies, along with the parameters characterizing a production function and the price-cost margins, we derive a measure of wage markup without relying on trade union participation data, and we study the correlation of the estimated parameters and markups with the firm-level productivity growth. Second, the paper contributes to literature on the structural identification of production functions in two ways. As a first step, it reviews the different estimation techniques that have been tackling the endogeneity issues concerning the simultaneity, the omitted output price, and the collinearity among input factors of production. Additionally, we propose an identification strategy that relies on the presence of imperfect competition in the flexible input market, namely, the labor market.
Subjects: 
price-cost margin
trade unions
identification
production functions
panel data
JEL: 
L10
D22
D24
J51
Document Type: 
Working Paper

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