 International Competition and Rent Sharing in French ManufacturingStefano Schiavo and Lionel Nesta No 2017/07, DEM Working Papers from Department of Economics and Management Abstract: The paper investigates the impact of import competition on rent-sharing between firms and employees. First, by applying recent advances in the estimation of price-costs margins to a large panel of French manufacturing firms for the period 1993–2007, we are able to classify each firm into labor- and product-market regimes based on the presence/absence of market power. Second, we concentrate on firms that operate in an e cient bargaining framework to study the e↵ect of import penetration on workers’ bargaining power. We find that French imports from other OECD countries have a negative e↵ect on bargaining power, whereas the impact of imports from low wage countries is more muted. By providing firm-level evidence on the relationship between international trade and rent sharing, the paper sheds new light on the e↵ect of trade liberalization on the labor market. Keywords: firm heterogeneity; import competition; mark-up; wage bargaining (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:trn:utwprg:2017/07 Access Statistics for this paper More papers in DEM Working Papers from Department of Economics and Management Contact information at EDIRC. |
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