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Product and Labor Market Imperfections and Scale Economies: Micro-Evidence on France, Japan and the Netherlands

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Author Info

  • Dobbelaere, Sabien

    ()
    (VU University Amsterdam)

  • Kiyota, Kozo

    ()
    (Yokohama National University)

  • Mairesse, Jacques

    ()
    (CREST-INSEE)

Abstract

Allowing for three labor market settings (perfect competition or right-to-manage bargaining, efficient bargaining and monopsony), this paper relies on an extension of Hall's econometric framework for estimating simultaneously price-cost margins and scale economies. Using an unbalanced panel of 17,653 firms over the period 1986-2001 in France, 8,725 firms over the period 1994-2006 in Japan and 7,828 firms over the period 1993-2008 in the Netherlands, we first apply two procedures to classify 30 comparable manufacturing industries in 6 distinct regimes that differ in terms of the type of competition prevailing in product and labor markets. For each of the three predominant regimes in each country, we then investigate industry differences in the estimated product and labor market imperfections and scale economies. We find important regime differences across the three countries and also observe differences in the levels of product and labor market imperfections and scale economies within regimes.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7253.

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Length: 43 pages
Date of creation: Feb 2013
Date of revision:
Publication status: forthcoming in: Journal of Comparative Economics
Handle: RePEc:iza:izadps:dp7253

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Keywords: rent sharing; monopsony; price-cost mark-ups; production function; panel data;

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Cited by:
  1. Flora BELLONE & KIYOTA Kozo & MATSUURA Toshiyuki & Patrick MUSSO & Lionel NESTA, 2013. "International Productivity Gaps and the Export Status of Firms: Evidence from France and Japan," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13011, Research Institute of Economy, Trade and Industry (RIETI).

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