The impact of trade liberalization on firms’ product and labor market power
研究贸易自由化如何影响企业的产品市场势力（价格加成）和劳动力市场势力（工资加成或折价），发现中国加入WTO后关税下降并未削弱企业行使这两种市场势力，反而扩大了价格加成和工资加成，缩小了工资折价。
Abstract This paper examines the impact of trade liberalization on firms’ product and labor market power. We estimate the prevalence and intensity of price-cost markups and either wage markups or wage markdowns, taking the dependence between these model-consistent measures of product and labor market power into account. Exploiting reductions in tariffs upon China’s World Trade Organization accession, we find that trade liberalization has not switched firms away from exercising product and labor market power. Reducing input tariffs has widened price-cost markups, narrowed wage markdowns, and widened wage markups at the firm level. We reveal heterogeneous trade liberalization effects on the intensity of firms’ product and labor market power.