Labor Market Concentration and Stayers' Wages: Evidence from France

Andrea Bassanini, Cyprien Batut and Eve Caroli

No 14912, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the impact of labor market concentration on stayers' wages, where stayers are defined as individuals who were already employed in the same firm the year before. Using administrative data for France, we show that the elasticity of stayers' wages to labor market concentration ranges between -0.0185 and -0.0230, depending on the instrument we use, and controlling for labor productivity and local product market concentration. This represents between about two thirds and three fourth of the elasticity we estimate for new hires. Given the strong wage rigidities characterizing the French labor market, this estimate can be considered a lower bound of the effect of labor market concentration on stayers' wages in an international perspective.

Keywords: labor market concentration; monopsony; wages; stayers (search for similar items in EconPapers)
JEL-codes: J31 J42 L41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2021-12
New Economics Papers: this item is included in nep-com, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Labor Market Concentration and Stayers'Wages: Evidence from France (2023)
Working Paper: Labor Market Concentration and Stayers'Wages: Evidence from France (2023)
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