The Labor Market Power of Exporting Firms: Evidence from Latin America
Francesco Amodio,
Emanuele Brancati,
Nicolas De Roux
et al.
Abstract:Using establishment-level data from the World Bank Enterprise Survey, we assess the market power of exporting firms across 16 countries in Latin America. Leveraging information on export destinations, as well as exchange rate and price data, we construct exchange rate-driven shocks to the marginal revenue product of individual firms. By examining firms' employment and wage responses, we estimate the inverse elasticity of the labor supply they face a direct indicator of labor market power. In our preferred spec… Show more
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