Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity

Jeremy Greenwood and David Weiss

No 19556, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: James A. Schmitz (2005) documents, in a well-known case study, a dramatic rise in productivity in the U.S. and Canadian iron-ore industry following an increase in competition from Brazil. Prior to the increased competition, the industry was not competitive. Surplus in profits was divided between business and unions. Schmitz attributes the increase in productivity to a change in work practices in the industry, as old negotiated union work rules were abandoned or modified. This research formalizes a mechanism through which a rise in competition can lead to increased productivity in the iron-ore industry.

JEL-codes: E13 J51 O47 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-com, nep-eff and nep-mac
Note: EFG
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Published as Jeremy Greenwood & David Weiss, 2018. "MINING SURPLUS: MODELING JAMES A. SCHMITZ'S LINK BETWEEN COMPETITION AND PRODUCTIVITY," International Economic Review, vol 59(3), pages 1015-1034.

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Related works:
Working Paper: Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity (2017)
Working Paper: Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity (2013)
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