Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236421 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14390
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
How much can employers in low and middle-income countries suppress wages below marginal productivity? Using plant and customs data from Colombia, we exploit pre- determined variation across plants in sales export destination combined with variation in exchange rates to generate plant-specific shocks to marginal revenue productivity and labor demand. We estimate a firm-level labor supply elasticity of around 2.5, implying that workers produce about 40% more than their wage level. Our results indicate that Colombian and US manufacturers have a comparable degree of labor market power.
Subjects: 
labor market power
export
Colombia
JEL: 
J42
L10
O14
O54
Document Type: 
Working Paper

Files in This Item:
File
Size
260.33 kB





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