Imports as Product and Labour Market Discipline

Boulhol, Hervé; Dobbelaere, Sabien; Maioli, Sara

doi:10.2139/ssrn.1327686

Cited by 42 publications

(73 citation statements)

References 49 publications

(43 reference statements)

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“…16 As expected, none of the industries is characterized by perfect competition in the product market and e¢ cient bargaining in the labor market (P C-EB). On the product market side, 76% of the industries are typi…ed by imperfect competition.…”

Section: About Here>mentioning

confidence: 73%

Panel Data Estimates Of The Production Function And Product And Labor Market Imperfections

Dobbelaere¹,

Mairesse²

2008

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Consistent with two models of imperfect competition in the labor market, the efficient bargaining model and the monopsony model, we provide two extensions of a microeconomic version of Hall's framework for estimating price-cost margins. We show that both product and labor market imperfections generate a wedge between factor elasticities in the production function and their corresponding shares in revenue, that can be characterized by a "joint market imperfections parameter". Using an unbalanced panel of 10646 French firms in 38 manufacturing industries over the period 1978-2001, we can classify these industries into six different regimes depending on the type of competition in the product and the labor market. By far the most predominant regime is one of imperfect competition in the product market and efficient bargaining in the labor market (IC-EB), followed by a regime of imperfect competition in the product market and perfect competition or right-to-manage bargaining in the labor market (IC-PR), and by a regime of perfect competition in the product market and monopsony in the labor market (PC-MO). For each of these three predominant regimes, we assess within-regime firm differences in the estimated average price-cost mark-up and rent-sharing or labor supply elasticity parameters, following the Swamy methodology to determine the degree of true firm dispersion. As a way to assess the plausibility of our findings in the case of the dominant regime (IC-EB), we also relate our industry and firm-level estimates of price-cost mark-up and relative extent of rent sharing to industry characteristics and firm-specific variables respectively.

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Section: About Here>mentioning

confidence: 73%

Panel Data Estimates Of The Production Function And Product And Labor Market Imperfections

Dobbelaere¹,

Mairesse²

2008

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“…However, Boulhol et al (2006) obtain the opposite result: they only obtain a negative relationship between the estimated markups and union bargaining power for imports from developed countries. They argue that this type of imports is surely intra-industry, so it is a better candidate for the pro-competitive effects on markups.…”

Section: Joint Estimation Of the Lerner Index And Union Bargaining mentioning

confidence: 87%

Markups, Bargaining Power and Offshoring: An Empirical Assessment

Moreno

Rodríguez

2010

SSRN Journal

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“…Table 2 summarizes the resulting industry classi…cation. 7 Columns 5 (CH) and 8 (F R) in Table A.2 in Appendix provide details on the speci…c industries belonging to each regime. Focusing on the product market side, 60% of the industries comprising 87% of the …rms are typi…ed by imperfect competition in CH whilst this holds for all industries in F R. On the labor market side, 80% of the industries comprising 47% of the …rms are characterized by perfect competition or right-to-manage bargaining and 20% of the industries comprising 53% of the …rms by e¢ cient bargaining in CH.…”

Section: Di¤erences In the Nature And The Degree Of Market Imperfectionsmentioning

confidence: 99%

Micro-Evidence on Product and Labor Market Regime Differences between Chile and France

Dobbelaere¹,

Lauterbach²,

Mairesse³

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Institutions, social norms and the nature of industrial relations vary greatly between Latin American and Western European countries. Such institutional and organizational differences might shape firms' operational environment in general and the type of competition in product and labor markets in particular. Contributing to the literature on estimating simultaneously product and labor market imperfections, this paper quantifies industry differences in both types of imperfections using firm-level data in Chile -a non-OECD member under the considered time period-and France. We rely on two extensions of Hall's econometric framework for estimating price-cost margins by nesting three labor market settings (perfect competition or right-to-manage bargaining, efficient bargaining and monopsony). Using an unbalanced panel of 1,737 firms over the period 1996-2003 in Chile containing unique data on firm-level output price indices and 14,270 firms over the period 1994-2001 in France, we first classify 20 comparable manufacturing industries in 6 distinct regimes that differ in the type of competition prevailing in product and labor markets. We then investigate industry differences in the estimated product and labor market imperfections. Consistent with differences in institutions and in the industrial relations system in the two countries, we find important regime differences across the two countries. In addition, we observe cross-country differences in the levels of product and labor market imperfections within regimes. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: C23, D21, J51, L13

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Imports as Product and Labour Market Discipline

Cited by 42 publications

References 49 publications

Panel Data Estimates Of The Production Function And Product And Labor Market Imperfections

Panel Data Estimates Of The Production Function And Product And Labor Market Imperfections

Markups, Bargaining Power and Offshoring: An Empirical Assessment

Micro-Evidence on Product and Labor Market Regime Differences between Chile and France

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