NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

David Weiss

The Eitan Berglas School of Economics
Tel Aviv University
P.O.B. 39040
Ramat Aviv, Tel Aviv, 69978
Israel

E-Mail: davidweiss@post.tau.ac.il

NBER Working Papers and Publications

October 2013Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity
with Jeremy Greenwood: w19556
James A. Schmitz (2005) documents, in a well-known case study, a dramatic rise in productivity in the U.S. and Canadian iron-ore industry following an increase in competition from Brazil. Prior to the increased competition, the industry was not competitive. Surplus in profits was divided between business and unions. Schmitz attributes the increase in productivity to a change in work practices in the industry, as old negotiated union work rules were abandoned or modified. This research formalizes a mechanism through which a rise in competition can lead to increased productivity in the iron-ore industry.
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us