Resource title

Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing

Resource image

image for OpenScout resource :: Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing

Resource description

This paper extends Hall's (1988) methodology to analyse imperfections in both the product and the labour market for firms in the Belgian manufacturing industry over the period 1988- 1995. We investigate the heterogeneity in price-cost mark-up and workers' bargaining power parameters among 18 sectors within the manufacturing industry as well as the relationship between both para meters. Using a sample of more than 7 000 firms, our GMM results indicate that ignoring imperfection in the labour market leads to an underestimation in the price -cost margin evaluated at perfect competition in the labour market. These findings are confirmed in the sectoral analysis. Sectors with higher workers' bargaining power typically show higher price-cost margins.

Resource author

Sabien Dobbelaere

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20765

Resource license

Adapt according to the presented license agreement and reference the original author.