Wages, Hires, and Labor Market Concentration

Ioana Marinescu, Ivan Ouss () and Louis-Daniel Pape
Additional contact information
Ivan Ouss: CREST (ENSAE)

No 13244, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: How does employer market power affect workers? We compute the concentration of new hires by occupation and commuting zone in France using linked employer-employee data. Using instrumental variables with worker and firm fixed effects, we find that a 10% increase in labor market concentration decreases hires by 12.4% and the wages of new hires by nearly 0.9%, as hypothesized by monopsony theory. Based on a simple merger simulation, we find that a merger between the top two employers in the retail industry would be most damaging, with about 24 million euros in annual lost wages for new hires, and an 8000 decrease in annual hires.

Keywords: wages; labor market concentration; hires; merger simulation (search for similar items in EconPapers)
JEL-codes: J31 J32 J42 J51 L13 L40 L41 L44 (search for similar items in EconPapers)
Pages: 71 pages
Date: 2020-05
New Economics Papers: this item is included in nep-cmp, nep-com, nep-hrm, nep-lma, nep-ore and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Published - published in: Journal of Economic Behavior & Organization, 2021, 184, 506 - 605

Downloads: (external link)
https://docs.iza.org/dp13244.pdf (application/pdf)

Related works:
Journal Article: Wages, hires, and labor market concentration (2021)
Working Paper: Wages, hires, and labor market concentration (2021)
Working Paper: Wages, Hires, and Labor Market Concentration (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13244

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().