I’m building a model with 4 sectors of production (agriculture, transport, services and industries) in perfect competition.
Since the environment is in perfect competition, wages and rental prices of capital should be the same in all sectors, right ?
One question that comes up a lot is the different labor cost of the sectors. I’m not sure I can capture that with a perfect competition set up but rather with a monopolist or a model with a labor union /searching - matching
Thank you so much.