Embedding the efficient bargaining model into the R. Hall (1988) approach for estimating price-cost margins shows that both imperfections in the product and labor markets generate a wedge between factor elasticities in the production function and their corresponding shares in revenue. This...

This paper shows that import exposure affects voting behavior because it affects local labor markets. We develop a new framework for mediation analysis where one instrumental variable is sufficient to identify three causal effects. Using German data from 1987-2009, we find that import exposure...

This study assesses whether wage inequality affects enterprises' operating revenues and whether operating revenues reversely affect wage inequality. To study our research questions, we analyze panel data from Norway and find that wage inequality decreases operating revenues. I.e., increasing...