This paper examines the determinants of profit margins in 91 U.K. manufacturing industries over the period 1983-86. It considers how the inclusion of labor market characteristics in empirical Industrial Organization specifications affects the estimated concentration-margins relationship. The empirical work pays detailed attention to the endogenous nature of variables derived from structural Industrial Organization models. The authors report instrumental variables estimates of margins equations in which there emerges a significant role for labor market characteristics. Indeed, both unionization and industrywide unemployment are found to depress profit margins. The impact of concentration is seen to be biased downward when these variables are omitted. Copyright 1991 by Blackwell Publishing Ltd.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)