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Workers’skills and product selection



    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE). 1348 Louvain la Neuve, Belgium)

  • TURRINI, Alessandro

    (University of Bergamo, Italy and Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Belgium)

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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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999006.

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Date of creation: 01 Jan 1999
Date of revision:
Handle: RePEc:cor:louvco:1999006
Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
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  1. repec:sae:niesru:v:128:y::i:1:p:40-57 is not listed on IDEAS
  2. John M. Abowd & Francis Kramarz & Antoine Moreau, 1995. "Product Quality and Worker Quality," NBER Working Papers 5077, National Bureau of Economic Research, Inc.
  3. Nancy L. Stokey, 1990. "Human Capital, Product Quality, And Growth," NBER Working Papers 3413, National Bureau of Economic Research, Inc.
  4. 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.
  5. 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.
  6. 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.
  7. Acemoglu, Daron, 1994. "Search in the Labour Market, Incomplete Contracts and Growth," CEPR Discussion Papers 1026, C.E.P.R. Discussion Papers.
  8. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
  9. repec:sae:niesru:v:111:y::i:1:p:48-61 is not listed on IDEAS
  10. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 217-35, June.
  11. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
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