Imports as Product and Labour Market Discipline

31 Pages Posted: 12 May 2011

See all articles by Herv Boulhol

Herv Boulhol

affiliation not provided to SSRN

Sabien Dobbelaere

Vrije Universiteit Amsterdam - Department of Economics; Tinbergen Institute; IZA Institute of Labor Economics

Sara Maioli

Newcastle University Business School

Date Written: May 1, 2011

Abstract

This article tests the pro-competitive effect of trade in the product and labour markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 11,799 firms from 20 manufacturing sectors to simultaneously estimate mark-up and workers' bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers' bargaining power in the mid-1990s. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers' bargaining power.

Suggested Citation

Boulhol, Herv and Dobbelaere, Sabien and Maioli, Sara, Imports as Product and Labour Market Discipline (May 1, 2011). British Journal of Industrial Relations, Vol. 49, No. 2, pp. 331-361, 2011. Available at SSRN: https://ssrn.com/abstract=1839122 or http://dx.doi.org/10.1111/j.1467-8543.2009.00760.x

Herv Boulhol

affiliation not provided to SSRN

Sabien Dobbelaere (Contact Author)

Vrije Universiteit Amsterdam - Department of Economics ( email )

De Boelelaan 1105
NL- Amsterdam, NL-1081 HV
Netherlands
0031 20 598 28 74 (Phone)

Tinbergen Institute

Keizersgracht 482
NL- Amsterdam, NL-1017 EG
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
D- Bonn, 53072
Germany

Sara Maioli

Newcastle University Business School ( email )

5, Barrack road
Newcastle upon Tyne, NE1 4SE
United Kingdom
+44 (0) 191 2081665 (Phone)

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