Arbeitspapier
Labor Market Power in Developing Countries: Evidence from Colombian Plants
How much can employers in low and middle-income countries suppress wages below marginal productivity? Using plant and customs data from Colombia, we exploit pre- determined variation across plants in sales export destination combined with variation in exchange rates to generate plant-specific shocks to marginal revenue productivity and labor demand. We estimate a firm-level labor supply elasticity of around 2.5, implying that workers produce about 40% more than their wage level. Our results indicate that Colombian and US manufacturers have a comparable degree of labor market power.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 14390
- Classification
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Wirtschaft
Monopsony; Segmented Labor Markets
Market Structure, Firm Strategy, and Market Performance: General
Industrialization; Manufacturing and Service Industries; Choice of Technology
Economywide Country Studies: Latin America; Caribbean
- Subject
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labor market power
export
Colombia
- Event
-
Geistige Schöpfung
- (who)
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Amodio, Francesco
de Roux, Nicolás
- Event
-
Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
-
2021
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Amodio, Francesco
- de Roux, Nicolás
- Institute of Labor Economics (IZA)
Time of origin
- 2021
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