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This paper investigates the factors that explain the level and dynamics of manufacturing firm productive efficiency. In our empirical analysis, we use a unique sample of about 39,000 firms in 256 industries from the German Cost Structure Census over the years 1992-2005. We estimate the...
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wages to the variability in productivity conditions in a unionsised oligopoly framework. The model distinguishes centralised … firm heterogeneity under centralised wage-setting, as unions internalise negative externalities of a wage increase for low-productivity …
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