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Workers' Skills and Product Selection

  • Jean Gabszewicz
  • Alessandro Turrini

[fre] Qualification de travailleurs et sélection de produits. . La production d'un bien de qualité supérieure requiert l'utilisation de travailleurs spécialement qualifiés à cette fin. Quand les firmes doivent choisir la qualité des biens qu' elles se proposent de produire et de vendre, leur choix dépend de l'abon­dance de travail qualifié offert sur le marché du travail. Nous analysons, dans cet article, comment s'opère la sélection de la qualité des produits par un monopole et en concurrence, en fonction de l'offre de travail qualifié. Nous démontrons que l'existence d'un pouvoir de marché introduit un biais par rapport à la solution concurrentielle, en faveur d'une qualité moyenne trop élevée. [eng] Workers' Skills and Product Selection. . When the production of high quality goods needs the employment of qualified labour, firms' decisions concerning quality are affected by the extent to which skills are abundant. By means of a comparison between monopoly and perfect compe­tition, we show how market power in such a context may entail a distorsion in product selection towards too high average quality.

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Article provided by Programme National Persée in its journal Revue économique.

Volume (Year): 50 (1999)
Issue (Month): 3 ()
Pages: 383-391

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Handle: RePEc:prs:reveco:reco_0035-2764_1999_num_50_3_410083
Note: DOI:10.2307/3502714
Contact details of provider: Web page: http://www.persee.fr/web/revues/home/prescript/revue/reco

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  1. John M. Abowd & Francis Kramarz & Antoine Moreau, 1995. "Product Quality and Worker Quality," NBER Working Papers 5077, National Bureau of Economic Research, Inc.
  2. Nancy L. Stokey, 1990. "Human Capital, Product Quality, and Growth," Discussion Papers 883, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
  4. repec:sae:niesru:v:128:y::i:1:p:40-57 is not listed on IDEAS
  5. GABSZEWICZ, Jean J. & TURRINI, Alessandro, . "Workers' skills, product quality and industry equilibrium," CORE Discussion Papers RP -1451, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Webster, Allan, 1993. "The Skill and Higher Educational Content of UK Net Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 141-59, May.
  7. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  8. Courakis, Anthony S, 1991. "Labour Skills and Human Capital in the Explanation of Trade Patterns," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 443-62, July.
  9. Acemoglu, Daron, 1994. "Search in the Labour Market, Incomplete Contracts and Growth," CEPR Discussion Papers 1026, C.E.P.R. Discussion Papers.
  10. repec:sae:niesru:v:111:y::i:1:p:48-61 is not listed on IDEAS
  11. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 217-35, June.
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