Interaction between product market and labour market power: evidence from France, Belgium and Chile

Jose Miguel Benavente, Sabien Dobbelaere and Jacques Mairesse

Applied Economics Letters, 2009, vol. 16, issue 6, 573-577

Abstract: This article jointly estimates price-cost mark-ups and union bargaining power of manufacturing firms in France, Belgium and Chile. Our GMM results provide strong evidence of price-cost mark-ups being underestimated when labour market imperfections are ignored, corresponding to the omission of the part of product rents captured by the workers.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:16:y:2009:i:6:p:573-577

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DOI: 10.1080/13504850701206478

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