Intangible Assets and Imperfections in Product and Labor Markets

Eric Bartelsman, Sabien Dobbelaere and Alessandro Zona Mattioli
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Sabien Dobbelaere: Vrije Universiteit Amsterdam
Alessandro Zona Mattioli: University of Amsterdam

No 26-008/VII, Tinbergen Institute Discussion Papers from Tinbergen Institute

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: 2026-02-26
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Related works:
Working Paper: Intangible Assets and Imperfections in Product and Labor Markets (2026)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20260008

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