The Mark-Ups in the Spanish Economy: International Comparison and Recent Evolution

Estrada, Ángel

doi:10.2139/ssrn.1379522

Cited by 60 publications

(16 citation statements)

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“…This result differs from those obtained by Estrada (2009) using industry‐aggregated data. He only found union bargaining power in service sectors as a whole, whereas he did not find evidence of worker power for manufacturing.…”

contrasting

confidence: 99%

“…As in previous empirical evidence, we find that ignoring bargaining between unions and employers underestimates the estimated Lerner index. The latter value is slightly larger than those obtained by Estrada (2009) using the same methodology but with industry data instead of firm data 18 . He finds a Lerner index of 0.136 for Spanish industries in the period 1970–2004.…”

Section: Resultscontrasting

confidence: 56%

“…We simultaneously consider imperfect competition in product and labour markets under the Roeger (1995) methodology, using the Crépon et al (1999) approach to the efficient bargaining model. To our knowledge, Estrada (2009) is the only paper that uses this approach to estimate Lerner index and union bargaining power for some industries in seven developed countries. Therefore, using the labour‐output elasticity defined earlier, both the Solow residual ( SR it ) and its price‐based ( DSR it ) now have the following expressions, where a new term that measures union bargaining power has been added: …”

Section: Theoretical and Empirical Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

Markups, Bargaining Power and Offshoring: An Empirical Assessment¹

Martín

Rodríguez

2011

World Economy

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This paper tests the pro‐competitive effect of imports on product and labour markets for Spanish manufacturing firms in the period 1990–2005. In doing so, it takes into account the type of imported products: final versus intermediate. Markups are estimated following the procedure suggested by Roeger and including an efficient bargaining model. The observed heterogeneity among firms is parametised to consider additional product standardisation and market concentration. The results support the imports as market discipline hypothesis for importers of final goods, while firms that offshore intermediate inputs show similar markups to nonimporters. Additionally, the union bargaining power is smaller for importers and the more homogeneous is the type of goods elaborated by firms.

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contrasting

confidence: 99%

Section: Resultscontrasting

confidence: 56%

Section: Theoretical and Empirical Frameworkmentioning

confidence: 99%

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Markups, Bargaining Power and Offshoring: An Empirical Assessment¹

Martín

Rodríguez

2011

World Economy

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“…Given that the large majority of earlier empirical work is focused on the manufacturing sector, services remain virtually undocumented in this literature with some exceptions. Christopoulou and Vermeulen (2012) and Estrada (2009) do not use firm-level data or provide evidence at narrowly defined sectors thus, to our knowledge, Molnár and Bottini (2010) and Molnár (2010) are the only studies to present evidence for services using firm-level data for several countries and for Slovenia, respectively. While they provide figures at a disaggregate level, they use data from AMADEUS which is biased to large firms, do not present figures for many sectors due to data limitations (such as Germany) or discuss the role of labour market imperfections.…”

Section: Introductionmentioning

confidence: 99%

Price-cost margin and bargaining power in the European Union

Soares

2019

Empir Econ

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Using firm-level data between 2004 and 2012 for eleven countries of the European Union (EU), we document the size of product and labour market imperfections within narrowly defined sectors including services which are virtually undocumented. Our findings suggest that perfect competition in both product and labour markets is widely rejected. Levels of the price-cost margin and union bargaining power tend to be higher in some service sectors depicting however substantial heterogeneity. Dispersion within sector and across countries tends to be higher in some services sectors assuming a less tradable nature which suggests that the Single Market integration is partial particularly relaxing the assumption of perfect competition in the labour market. We report also figures for the aggregate economy and show that Eastern countries tend to depict lower product and labour market imperfections compared to other countries in the EU. Also, we provide evidence in favour of a very limited adjustment of both product and labour market imperfections following the international and financial crisis.

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“…To our knowledge, Estrada (2009) is the only paper that uses this approach to estimate Lerner index and union bargaining power for some industries in seven developed countries. Therefore, using the labouroutput elasticity defined above, both the Solow residual (SR it ) and its price-based (DSR it ) now have the following expressions, where a new term that measures union bargaining power has been added:…”

Section: B Empirical Approachmentioning

confidence: 99%