Imports as Product and Labour Market Discipline

Herve Boulhol, Sabien Dobbelaere and Sara Maioli
Additional contact information
Sara Maioli: Newcastle University Business School

No 09-002/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the British Journal of Industrial Relations , 49(2), 331-361. 10.1111/j.1467-8543.2009.00760.x

This paper tests the pro-competitive effect of trade in the product and labour 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.

Keywords: Workers’ bargaining power; mark-ups; pro-competitive effect (search for similar items in EconPapers)
JEL-codes: C23 F16 J51 L13 (search for similar items in EconPapers)
Date: 2009-01-07
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Related works:
Journal Article: Imports as Product and Labour Market Discipline (2011)
Working Paper: Imports as product and labour market discipline (2007)
Working Paper: Imports as Product and Labor Market Discipline (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20090002

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