%0 Report
        %A Dobbelaere, Sabien
        %T Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing
        %D 2005
        %8 2005 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1466
        %U https://www.iza.org/publications/dp1466
        %X 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.
        %K bargaining power
%K market power
%K price-cost margins
%K efficient bargaining