Imports as product and labor market discipline

Arbeitspapier

This paper tests the pro-competitive effect of trade in the product and labor markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and workers' bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers' bargaining power in the mid-nineties. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers' bargaining power.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 2178

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Trade and Labor Market Interactions ; Trade Unions: Objectives, Structure, and Effects ; Oligopoly and Other Imperfect Markets
• Subject: workers' bargaining power ; mark-ups ; pro-competitive effect ; Gewerkschaftlicher Organisationsgrad ; Lohnverhandlungen ; Internationaler Wettbewerb ; Außenhandelseffekt ; Schätzung ; Verarbeitendes Gewerbe ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Boulhol, Hervé ; Dobbelaere, Sabien ; Maioli, Sara
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/34062
• Last update: 10.03.2025, 11:43 AM CET