Product and labor market imperfections and scale economies: Micro-evidence on France, Japan and the Netherlands(Article)(Open Access)
- aVU University Amsterdam, De Boelelaan 1105, Amsterdam, 1081 HV, Netherlands
- bTinbergen Institute (TIA), Gustav Mahlerplein 117, Amsterdam, 1082 MS, Netherlands
- cIZA, Schaumburg-Lippe-Strasse 5-9, Bonn, 53113, Germany
- dKeio Economic Observatory, Keio University, 2-15-45 Mita, Minato-ku, Tokyo, 108-8345, Japan
- eRIETI, 1-3-1, Kasumigaseki, Chiyoda-ku, Tokyo, 100-8901, Japan
- fCREST (ParisTech-ENSAE), 15 Boulevard Gabriel Péri, Malakoff Cedex, 92245, France
- gUNU-MERIT (Maastricht University), Keizer Karelplein 19, Maastricht, 6211 TC, Netherlands
- hNBER, 1050 Massachusetts Ave., Cambridge, MA, United States
Abstract
Allowing for three labor market settings (perfect competition or right-to-manage bargaining, efficient bargaining and monopsony), this paper relies on two extensions of Hall's econometric framework for estimating simultaneously price-cost margins and scale economies. Using an unbalanced panel of 17653 firms over the period 1986-2001 in France, 8728 firms over the period 1994-2006 in Japan and 7828 firms over the period 1993-2008 in the Netherlands, we first apply two procedures to classify 30 comparable manufacturing industries in 6 distinct regimes that differ in terms of the type of competition prevailing in product and labor markets. For each of the predominant regimes in each country, we then investigate industry differences in the estimated product and labor market imperfections and scale economies. Consistent with differences in institutions and in the industrial relations system in the three countries, we find important regime differences across the three countries and also observe differences in the levels of product market imperfections and scale economies within regimes. © 2014 Association for Comparative Economic Studies.
Funding details
| Funding sponsor | Funding number | Acronym |
|---|---|---|
| Japan Society for the Promotion of Science See opportunities by JSPS | 26220503,A-22243023 | JSPS |
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We are grateful to the Editor and an anonymous referee for helpful comments and suggestions. We also benefited from useful discussions with and comments by Christopher Baum, Björn Brügemann, Masahisa Fujita, Kyoji Fukao, Michihiro Kandori, Bas van der Klaauw, José Luis Moraga-González, Masayuki Morikawa, Mark Schaffer, Ayumu Tanaka and other participants at various conferences and seminars. The analysis using the French firm-level data was conducted at “Centre de Recherche en Économie et Statistique” (CREST) and the one using the Japanese firm-level data at the Research Institute of Economy, Trade and Industry (RIETI). The authors would like to thank Statistics Netherlands for providing the Dutch data. Kiyota acknowledges financial support from the Japan Society for the Promotion of Science (Grant-in-aid A-22243023 ).
- ISSN: 01475967
- Source Type: Journal
- Original language: English
- DOI: 10.1016/j.jce.2014.08.006
- Document Type: Article
- Publisher: Academic Press Inc.
Dobbelaere, S.; VU University Amsterdam, De Boelelaan 1105, Amsterdam, Netherlands
© Copyright 2015 Elsevier B.V., All rights reserved.
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