%0 Report
        %A Amodio, Francesco
%A Roux, Nicolás de
        %T Labor Market Power in Developing Countries: Evidence from Colombian Plants
        %D 2021
        %8 2021 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14390
        %U https://www.iza.org/index.php/publications/dp14390
        %X How much can employers in low and middle-income countries suppress wages below marginal productivity? Using plant and customs data from Colombia, we exploit pre- determined variation across plants in sales export destination combined with variation in exchange rates to generate plant-specific shocks to marginal revenue productivity and labor demand. We estimate a firm-level labor supply elasticity of around 2.5, implying that workers produce about 40% more than their wage level. Our results indicate that Colombian and US manufacturers have a comparable degree of labor market power.
        %K labor market power
%K export
%K Colombia