Imports and labour market imperfections: Firm-level evidence from France

This paper examines the presence of labour market imperfections in France, that lead to power on side either firms or their workforce, and investigates role import competition as a possible discipline device. Using information large panel French manufacturing firms, we find Chinese lowers positive gap between actual wages level would prevail under perfect competition, thus strengthening firms’ position. adjustment does not take place via fall wages, but rather through an increase productivity. Finally, compresses price-cost margins induces quality upgrading among manufacturers.