TY  - RPRT
        AU  - Dobbelaere, Sabien
        TI  - Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing
        PY  - 2005/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1466
        UR  - https://www.iza.org/publications/dp1466
        AB  - 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.
        KW  - bargaining power
KW  - market power
KW  - price-cost margins
KW  - efficient bargaining
        ER  -