@TechReport{iza:izadps:dp1466,
            	author={Dobbelaere, Sabien},
            	title={Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing},
            	year={2005},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1466},
            	url={https://www.iza.org/publications/dp1466},
	abstract={This paper extends Hall's (1988) methodology to analyse imperfections in both the product and the labour market for firms in the Belgian manufacturing industry over the period 1988-1995. We investigate the heterogeneity in price-cost mark-up and workers' bargaining power parameters among 18 sectors within the manufacturing industry as well as the relationship between both parameters. Using a sample of more than 7 000 firms, our GMM results indicate that ignoring imperfection in the labour market leads to an underestimation in the price-cost margin evaluated at perfect competition in the labour market. These findings are confirmed in the sectoral analysis. Sectors with higher workers' bargaining power typically show higher price-cost margins.},
	keywords={bargaining power;market power;price-cost margins;efficient bargaining},
            }