by Matt O'Brien July 18 at 10:17 AM Email the author (AP Photo/Gene J. Puskar) The unemployment rate has fallen from 5 percent to 4
- Monopsony; Oligopsony; Labor Markets; Competition Policy
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Without competition, workers, consumers, and small businesses fall further behind The stock market and corporate profits are soaring as w...
A product market is concentrated when a few firms dominate the market. Similarly, a labor market is concentrated when a few firms dominate hiring in the market. Using data from the leading employment website CareerBuilder, we calculate labor market concentration for over 8,000 geographic-occupational labor markets in the US. Based on the DOJ-FTC horizontal merger guidelines, the average market is highly concentrated. Using a panel IV regression, we show that going from the 25th percentile to the 75th percentile in concentration is associated with a 17% decline in posted wages, suggesting that concentration increases labor market power.