English, Article, Journal or magazine article edition: Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing S. DOBBELAERE

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Bookmark: http://trove.nla.gov.au/version/15289
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing
Author
  • S. DOBBELAERE
Physical Description
  • preprint
Notes
  • 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 union bargaining power parameters among 18 sectors within the manufacturing industry as well as the relationship between both parameters. 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 worker bargaining power typically show higher price-cost margins.
  • Efficient Bargaining, Union Bargaining Power, Market Power, Price-Cost Margins
  • RePEc:rug:rugwps:03/​171
Language
  • English
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