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Converging to mediocrity: Trends in firm-level markups in the United Kingdom 2008–2019

Year: 2026

Type: article

Abstract: UK manufacturing productivity has declined sharply since 2008, yet little is known about the role of trends in firm-level markups in this context. We estimate firm-level markups using a structural demand approach with revenue shares and industry elasticities, which is complemented by a primal method. Findings indicate a decline in aggregate markups of two to five per cent from 2008 to 2019, driven mainly by within-firm declines. These results suggest that the UK’s productivity slowdown reflects structural deterioration within manufacturing firms rather than reallocation effects.

Source: Economics Letters

DOI: 10.1016/j.econlet.2026.112851

Authors: Diane Coyle, John McHale, Ioannis Bournakis, Jen-Chung Mei

Institutions: University of Cambridge, Ollscoil na Gaillimhe – University of Galway, SKEMA Business School, Université Côte d'Azur, Queen Mary University of London

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,030