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The Impact of Competition on Prices and Wages in Dutch Manufacturing Industries

Author

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  • Lever, M.H.C.

Abstract

The impact of competition on prices and wages in investigated using a panel of three-digit industries in the Dutch Manufacturing sector (1978-1991). Output prices are explaining using an oligopoly model, whereas wages are axplained through a bargaining model. The analysis reveals that market concentration in the product market has an upward impact on the price level, while exposure to foreign competition has an downward impact.

Suggested Citation

  • Lever, M.H.C., 1997. "The Impact of Competition on Prices and Wages in Dutch Manufacturing Industries," Papers 97-02, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    • Handle: RePEc:fth:miklrr:97-02
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    Cited by:

    1. Roy Thurik & Sander Wennekers & Ingrid Verheul & David Audretsch, 2001. "An eclectic theory of entrepreneurship: policies, institutions and culture," Scales Research Reports H200012, EIM Business and Policy Research.

    More about this item

    Keywords

    COMPETITION ; PRICES ; WAGES;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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