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Estimating mark-ups and the effect of product market regulations in selected professional services sectors
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Estimating mark-ups and the effect of product market regulations in selected professional services sectors

A firm-level analysis

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In this paper we estimate mark-ups and their association with product market regulations (PMR) in professional services sectors using the Orbis firm-level database for 13 EU member states. We will concentrate on engineering and accounting. Results indicate a significant effect of PMR on mark-ups, which confirms findings based on sectoral data (cf. Thum-Thysen and Canton, 2015) but a more granular analysis on the firm level gives additional insights. Compared to estimates of mark-ups based on sectoral data, the mark-up levels in the two analysed sectors using firm-level data are found to be higher. This may be due to a more granular sectoral definition, only covering regulated professions, where firms can gain market power and charge higher mark-ups. The new empirical findings could be useful for the analytical work on estimating the impact of structural reforms.
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ISSN 2443-8022
ISBN 978-92-79-64883-0
DOI 10.2765/672172
Katalognummer KC-BD-17-046-EN-N
ISBN 978-92-79-64884-7
DOI 10.2765/776346
Katalognummer KC-BD-17-046-EN-C
PDF
ISSN 2443-8022 ISBN 978-92-79-64883-0 DOI 10.2765/672172 Katalognummer KC-BD-17-046-EN-N
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ISSN ISBN 978-92-79-64884-7 DOI 10.2765/776346 Katalognummer KC-BD-17-046-EN-C
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