Intangible Assets and Imperfections in Product and Labor Markets

Eric Bartelsman (), Sabien Dobbelaere () and Alessandro Zona Mattioli ()
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Eric Bartelsman: Vrije Universiteit Amsterdam
Sabien Dobbelaere: Vrije Universiteit Amsterdam
Alessandro Zona Mattioli: Universiteit van Amsterdam

No 18440, IZA Discussion Papers from IZA Network @ LISER

Abstract: This paper develops a micro-founded framework linking price-cost and wage markups to intangible assets. Intangible assets, once created, are a source of firm rents. Owing to limits to enforceable ownership and the non-rival nature of knowledge, these rents can be both retained by the origin firm and transferred to a competitor through poaching of workers. Search and matching frictions affect labor mobility and result in bargaining over rents between the firm and the worker. This environment generates hold-up in intangible asset creation and motivates rent sharing. Under non-compete agreements, poached workers face start delays that weaken outside options. Using microdata from the Netherlands, we document higher price-cost and wage markups in more intangible-intensive firms and lower wages for workers with non-compete agreements, consistent with the model.

Keywords: price-cost markups; wage markups; rent sharing; intangibles; non-compete agreements (search for similar items in EconPapers)
JEL-codes: J41 L10 O30 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-bec, nep-com and nep-lma
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