Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144307
Authors: 
Abraham, Filip
Konings, Jozef
Vanormelingen, Stijn
Year of Publication: 
2006
Series/Report no.: 
Working Paper Research 93
Abstract: 
Europe has witnessed the last decade an accelerated process of economic integration. Trade barriers were removed, the euro was introduced and ten new member states entered the European Union. Economic integration is likely to have an impact on both labor and product markets. Unlike most other papers, that focus on product and labor markets separately, we look at the link between globalization and product and labor market imperfections simultaneously. To this end, we rely on a rich panel of manufacturing firms in Belgium, a small open economy. We find that union bargaining power is higher in sectors characterized by high price cost margins. Moreover, ignoring imperfections on the labor market, leads to an underestimation of product market power. Concerning the influence of globalization, our main findings are that both price cost margins and union bargaining power are typically lower in sectors that are subject higher international competition. This result is especially true for competition from low wage countries
Subjects: 
Mark-ups
Trade Unions
International Trade
JEL: 
F16
J50
L13
Document Type: 
Working Paper

Files in This Item:
File
Size
299.88 kB





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