Benavente, J.M., Dobbelaere, S. and Mairesse, J. (2009). Interaction between product market and labour market power: Evidence from France, Belgium and Chili Applied Economics Letters, 16(6):573--577.
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Affiliated author
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Publication year2009
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JournalApplied Economics Letters
This article jointly estimates price-cost mark-ups and union bargaining power of manufacturing firms in France, Belgium and Chile. Our GMM results provide strong evidence of price-cost mark-ups being underestimated when labour market imperfections are ignored, corresponding to the omission of the part of product rents captured by the workers.