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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/20372

Title: Productivity, Price- and Wage-Markups: An Empirical Analysis of the Dutch Manufacturing Industry
Authors: Amoroso, Sara
Melenberg, Bertrand
Plasmans, Joseph
Vancauteren, Mark
Issue Date: 2015
Publisher: Cesifo
Series/Report: CESifo Working Papers
Series/Report no.: 5273
Abstract: This paper examines the interaction between productivity growth, firms’ monopolistic market power, and workers’ wage bargaining power. Our study contributes to several strands of literatures. First, we examine a monopolistic framework which accounts for wage bargaining. In addition to the other studies, along with the parameters characterizing a production function and the price-cost margins, we derive a measure of wage markup without relying on trade union participation data, and we study the correlation of the estimated parameters and markups with the firm-level productivity growth. Second, the paper contributes to literature on the structural identification of production functions in two ways. As a first step, it reviews the different estimation techniques that have been tackling the endogeneity issues concerning the simultaneity, the omitted output price, and the collinearity among input factors of production. Additionally, we propose an identification strategy that relies on the presence of imperfect competition in the flexible input market, namely, the labor market.
URI: http://hdl.handle.net/1942/20372
ISSN: 2364-1428
Category: R1
Type: Working Paper
Appears in Collections: Research publications

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