Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282776 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16649
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Trade policies might affect firms' market power and their ability to reap product-market mark-ups. Thus, potentially they influence not only firms' economic performance, but also worker pay. Utilising panel-data on Norwegian Manufacturing exporters from 2005-18 and multi-product production function-estimation techniques and recent development within the literature on dynamic treatment effects in event studies with heterogeneous treatment effects, we show that free-trade agreements increase exports and return-on-assets for Norwegian incumbent exporters, but their mark-ups decline. On average, workers in these established firms benefit from free-trade agreements, but this depends on occupations, union strength and labour market tightness.
Subjects: 
free-trade agreements
price-cost markups
profits
wages
multiproduct-function-estimation
dynamic treatment effects
JEL: 
D24
F14
L11
J31
J42
Document Type: 
Working Paper

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