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Does market structure affect labour productivity and wages? Evidence from a smooth coefficient semiparametric panel model

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  • Polemis, Michael L.
  • Stengos, Thanasis

Abstract

This paper investigates the impact of market structure on labour productivity and wages using a panel data set of US manufacturing industries over the period 1958–2007. To account for nonlinear effects, we employ a smooth coefficient semiparametric model (SCSM). We find evidence in support of a nonlinear relationship between market concentration and labour productivity and wages. Lastly, our empirical findings shed new light on the competition–labour productivity nexus.

Suggested Citation

  • Polemis, Michael L. & Stengos, Thanasis, 2015. "Does market structure affect labour productivity and wages? Evidence from a smooth coefficient semiparametric panel model," Economics Letters, Elsevier, vol. 137(C), pages 182-186.
    • Handle: RePEc:eee:ecolet:v:137:y:2015:i:c:p:182-186
    DOI: 10.1016/j.econlet.2015.11.004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michael L. Polemis, 2018. "Revisiting the Environmental Kuznets Curve: a semi-parametric analysis on the role of market structure on environmental pollution," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 27-35, March.
    2. Michael L. Polemis, 2020. "A note on the estimation of competition-productivity nexus: a panel quantile approach," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(4), pages 663-676, December.
    3. Chen, Chaoyi & Polemis, Michael & Stengos, Thanasis, 2018. "On the examination of non-linear relationship between market structure and performance in the US manufacturing industry," Economics Letters, Elsevier, vol. 164(C), pages 1-4.
    4. Michael L. Polemis & Thanasis Stengos, 2019. "Does competition prevent industrial pollution? Evidence from a panel threshold model," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 98-110, January.
    5. Folarin Alayande* & Dr. Wumi Olayiwola, 2019. "Trade Policy Incentives, Market Structure and Productivity," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(7), pages 1106-1122, 07-2019.
    6. Michael L. Polemis & Thanasis Stengos & Nickolaos G. Tzeremes, 2020. "Modeling the effect of competition on US manufacturing sectors’ efficiency: an order-m frontier analysis," Journal of Productivity Analysis, Springer, vol. 54(1), pages 27-41, August.
    7. Subal C. Kumbhakar & Kai Sun & Rui Zhang, 2016. "Semiparametric Smooth Coefficient Estimation of a Production System," Pacific Economic Review, Wiley Blackwell, vol. 21(4), pages 464-482, October.
    8. Tsionas, Mike G. & Polemis, Michael L., 2019. "On the estimation of total factor productivity: A novel Bayesian non-parametric approach," European Journal of Operational Research, Elsevier, vol. 277(3), pages 886-902.
    9. Polemis, Michael & Stengos, Thanasis & Tzeremes, Nickolaos, 2018. "Modeling the effect of competition using robust conditional nonparametric frontiers: Evidence from U.S. manufacturing sector," MPRA Paper 89240, University Library of Munich, Germany.
    10. Polemis, Michael L. & Tzeremes, Nickolaos G., 2019. "Competitive conditions and sectors’ productive efficiency: A conditional non-parametric frontier analysis," European Journal of Operational Research, Elsevier, vol. 276(3), pages 1104-1118.

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    More about this item

    Keywords

    Market structure; Smooth coefficient semiparametric model; Manufacturing sector; Labour productivity; Wages;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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