Mertens, Matthias; Mottironi, Bernardo - Leibniz-Institut für Wirtschaftsforschung Halle - 2023 - This version: September 18, 2023
Several models posit a positive cross-sectional correlation between markups and firm size, which characterizes misallocation, factor shares, and gains from trade. Accounting for labor market power in markup estimation, we find instead that larger firms have lower product markups but higher wage...