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Workers' Skills and Product Selection

Author

Listed:
  • Jean Gabszewicz
  • Alessandro Turrini

Abstract

[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.

Suggested Citation

  • Jean Gabszewicz & Alessandro Turrini, 1999. "Workers' Skills and Product Selection," Revue Économique, Programme National Persée, vol. 50(3), pages 383-391.
  • Handle: RePEc:prs:reveco:reco_0035-2764_1999_num_50_3_410083
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    References listed on IDEAS

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    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 217-235.
    2. Gabszewicz, J. & Turrini, A., 2000. "Workers' skills, product quality and industry equilibrium," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 575-593, May.
    3. A. Daly & D.M.W.N. Hitchens & K. Wagner, 1985. "Productivity, Machinery and Skills in a Sample of British and German Manufacturing Plants," National Institute Economic Review, National Institute of Economic and Social Research, vol. 111(1), pages 48-61, February.
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    5. 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 141-159, May.
    6. 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 443-462, July.
    7. Nancy L. Stokey, 1991. "Human Capital, Product Quality, and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 587-616.
    8. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    9. John M. Abowd & Françis Kramarz & Antoine Moreau, 1996. "Product Quality and Worker Quality," Annals of Economics and Statistics, GENES, issue 41-42, pages 299-322.
    10. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
    11. repec:sae:niesru:v:111:y::i:1:p:48-61 is not listed on IDEAS
    12. Acemoglu, Daron, 1994. "Search in the Labour Market, Incomplete Contracts and Growth," CEPR Discussion Papers 1026, C.E.P.R. Discussion Papers.
    13. repec:adr:anecst:y:1996:i:41-42:p:13 is not listed on IDEAS
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    Cited by:

    1. Marisa Cenci & Margherita Scarlato, 2002. "Istituzioni e mercato del lavoro nel Mezzogiorno d’Italia: un’analisi dinamica," Rivista di Politica Economica, SIPI Spa, vol. 92(3), pages 281-320, May-June.
    2. Emanuele Bacchiega & Antonio Minniti, 2015. "Training and Product Quality in Unionized Oligopolies," Economica, London School of Economics and Political Science, vol. 82, pages 1261-1301, December.
    3. Emanuele Bacchiega, 2007. "Wage bargaining and vertical differentiation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(1), pages 35-52, March.
    4. BACCHIEGA, Emanuele, 2004. "Vertical differentiation, wage bargaining and intra-industry trade liberalization," CORE Discussion Papers 2004028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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