Concentration in US Labor Markets: Evidence from Online Vacancy Data

Citation data:

SSRN Electronic Journal

Publication Year:
2018
Usage 3206
Abstract Views 2661
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SSRN
SSRN Id:
3133344
DOI:
10.2139/ssrn.3133344
Author(s):
Joss mname Azar; Ioana Elena mname Marinescu; Marshall mname Steinbaum; Bledi mname Taska
Publisher(s):
Elsevier BV
Tags:
Monopsony; Oligopsony; Labor Markets; Competition Policy
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article description
Using data on the near-universe of online US job vacancies collected by Burning Glass Technologies in 2016, we calculate labor market concentration using the Herfindahl-Hirschman index (HHI) for each commuting zone by 6-digit SOC occupation. The average market has an HHI of 4,378, or the equivalent of 2.3 recruiting employers. 60% of labor markets are highly concentrated (above 2,500 HHI) according to the DOJ/FTC guidelines. Highly concentrated markets account for 20% of employment. Many plausible alternative market definitions show that more than 40% of markets are highly concentrated, suggesting that employers have market power in many US labor markets.