Abstract
A number of recent studies have examined the cyclical relationship between price-cost margins, concentration and unions. U.S. data has concluded that unions reduce margins; margins vary over the cycle; and concentration, unionisation and the cycle interact in their effect on margins. However, there is almost no theory to account for these results. We propose a simple theory that assumes only that there is overhead labour present at the firm. This produces theoretical predictions that can explain these results, and discriminate between existing theories. We present results of our own using U.K. panel data, and show similar findings to the U.S.
| Original language | English |
|---|---|
| Pages (from-to) | 611-632 |
| Number of pages | 22 |
| Journal | International Journal of Industrial Organization |
| Volume | 10 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Dec 1992 |
ASJC Scopus subject areas
- Industrial relations
- Aerospace Engineering
- Strategy and Management
- Industrial and Manufacturing Engineering
Cite this
Margins, concentration, unions and the business cycle: Theory and evidence for Britain. / Haskel, Jonathan; Martin, Christopher.
In: International Journal of Industrial Organization, Vol. 10, No. 4, 12.1992, p. 611-632.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Margins, concentration, unions and the business cycle:
T2 - Theory and evidence for Britain
AU - Haskel, Jonathan
AU - Martin, Christopher
PY - 1992/12
Y1 - 1992/12
N2 - A number of recent studies have examined the cyclical relationship between price-cost margins, concentration and unions. U.S. data has concluded that unions reduce margins; margins vary over the cycle; and concentration, unionisation and the cycle interact in their effect on margins. However, there is almost no theory to account for these results. We propose a simple theory that assumes only that there is overhead labour present at the firm. This produces theoretical predictions that can explain these results, and discriminate between existing theories. We present results of our own using U.K. panel data, and show similar findings to the U.S.
AB - A number of recent studies have examined the cyclical relationship between price-cost margins, concentration and unions. U.S. data has concluded that unions reduce margins; margins vary over the cycle; and concentration, unionisation and the cycle interact in their effect on margins. However, there is almost no theory to account for these results. We propose a simple theory that assumes only that there is overhead labour present at the firm. This produces theoretical predictions that can explain these results, and discriminate between existing theories. We present results of our own using U.K. panel data, and show similar findings to the U.S.
UR - http://www.scopus.com/inward/record.url?scp=21144479928&partnerID=8YFLogxK
U2 - 10.1016/0167-7187(92)90062-4
DO - 10.1016/0167-7187(92)90062-4
M3 - Article
VL - 10
SP - 611
EP - 632
JO - International Journal of Industrial Organization
JF - International Journal of Industrial Organization
SN - 0167-7187
IS - 4
ER -