The Impact of Concentration on Wages in the Sectors of Mining and Manufacturing of West German Industry

B. Feldmann
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B. Feldmann: Universtät Hamburg

No 1981037, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: For the purpose of this paper, first a simple model of wage determination under the assumption of perfect competition will be developed to find other right hand variables apart from monopoly power characteristics for the regression. Then possible consequence of monopoly power on labour earnings will be shortly discussed, especially whether higher or lower labour income can be expected theoretically in concentrated sectors. In addition, other determinants of monopoly power apart from firms’ concentration will be considered and instrumentalized for the regressions. Above all the role of international trade, barriers to entry and the determinants of worker’s power will be discussed.

Pages: 21
Date: 1981-09-01
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