Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/38995
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dc.contributor.authorAmoroso, Saraen_US
dc.contributor.authorKort, Peter M.en_US
dc.contributor.authorMelenberg, Bertranden_US
dc.contributor.authorPlasmans, Josephen_US
dc.contributor.authorVancauteren, Marken_US
dc.date.accessioned2010-06-18en_US
dc.date.accessioned2010-08-18T11:19:13Z-
dc.date.available2010-08-18T11:19:13Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/38995-
dc.description.abstractThis article examines the role of the interaction between product market and labor market imperfections in determining total factor productivity growth (TFPG). Embedding Dobbelaere and Mairesse's (2009) generalization of Hall's (1990) approach, allowing for the possibility that wages are determined according to an efficient bargaining process between employers and employees, we correct estimated TFPG for possible biases arising from labor market imperfections. Our analysis contributes to the literature in a number of ways. First, we propose a new empirical measure of TFPG which takes into account possible biases coming from imperfect competition on both labor and output markets, whereas Dobbelaere and Mairesse (2009) focus on the decomposition of the Solow residual. Second, in contrast to most of the literature following Hall's approach, we estimate market power including the user cost of capital stock. Third, we measure the sensitivity of TFPG to an alternative specification of competition based on relative profits. Using a large Dutch firm-level panel database over the period 1989-2005, we find that workers' unions power, and in general rigidities of the labor market, affect firms' marginal cost, and, consequently, the markups. Moreover, taking into account variable returns to scale and imperfect competition in the output market translate into increased TFPG, while accounting for labor market bargaining power leads to lower TFPG. Next, the investigation of our empirical relationship between the price-cost margin and an alternative specification of imperfect competition of the output market (profit elasticity) as a sensitivity analysis of the TFPG shows that adding more structure to the competition measure does not affect the level of productivity change.en_US
dc.language.isoengen_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo working paper Industrial Organisation |x3082en_US
dc.subject.jelD21en_US
dc.subject.jelD24en_US
dc.subject.jelL00en_US
dc.subject.jelL13en_US
dc.subject.ddc330en_US
dc.subject.stwProduktivitäten_US
dc.subject.stwPanelen_US
dc.subject.stwSchätztheorieen_US
dc.subject.stwUnvollkommener Wettbewerben_US
dc.subject.stwArbeitsmarkten_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwTheorieen_US
dc.subject.stwSchätzungen_US
dc.subject.stwNiederlandeen_US
dc.titleFirm level productivity under imperfect competition in output and labor marketsen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn629655839en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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