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Interaction between product market and labour market power: evidence from France, Belgium and Chile

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  • Jose Miguel Benavente
  • Sabien Dobbelaere
  • Jacques Mairesse

Abstract

This article jointly estimates price-cost mark-ups and union bargaining power of manufacturing firms in France, Belgium and Chile. Our GMM results provide strong evidence of price-cost mark-ups being underestimated when labour market imperfections are ignored, corresponding to the omission of the part of product rents captured by the workers.

Suggested Citation

  • Jose Miguel Benavente & Sabien Dobbelaere & Jacques Mairesse, 2009. "Interaction between product market and labour market power: evidence from France, Belgium and Chile," Applied Economics Letters, Taylor & Francis Journals, vol. 16(6), pages 573-577.
  • Handle: RePEc:taf:apeclt:v:16:y:2009:i:6:p:573-577
    DOI: 10.1080/13504850701206478
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    Cited by:

    1. Sabien Dobbelaere & Rodolfo Lauterbach & Jacques Mairesse, 2016. "Micro-evidence on product and labor market regime differences between Chile and France," International Journal of Manpower, Emerald Group Publishing, vol. 37(2), pages 229-252, May.
    2. Sabien Dobbelaere & Mark Vancauteren, 2014. "Market imperfections, skills and total factor productivity : Firm-level evidence on Belgium and the Netherlands," Working Paper Research 267, National Bank of Belgium.

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