Imports as Product and Labour Market Discipline | Zendy

Hervé Boulhol | Zendy; Sabien Dobbelaere | Zendy; Sara Maioli | Zendy

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Imports as Product and Labour Market Discipline

Author(s) -

Hervé Boulhol,

Sabien Dobbelaere,

Sara Maioli

Publication year - 2009

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.1327686

Subject(s) - bargaining power , manufacturing sector , market power , product (mathematics) , economics , estimation , power (physics) , collective bargaining , labour economics , order (exchange) , retail trade , product market , business , market economy , commerce , microeconomics , monopoly , geometry , mathematics , incentive , physics , management , finance , quantum mechanics

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.

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