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Imports as Product and Labour Market Discipline

Lookup NU author(s): Dr Sara MaioliORCiD

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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.

Publication metadata

Author(s): Boulhol H, Dobbelaere S, Maioli S

Publication type: Article

Publication status: Published

Journal: British Journal of Industrial Relations

Year: 2011

Volume: 49

Issue: 2

Pages: 331-361

ISSN (print): 0007-1080

ISSN (electronic): 1467-8543

Publisher: Wiley-Blackwell Publishing Ltd.

URL: http://dx.doi.org/10.1111/j.1467-8543.2009.00760.x

DOI: 10.1111/j.1467-8543.2009.00760.x

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