Common Ownership in Labor Markets

Jose Azar, Yue Qiu and Aaron Sojourner
Additional contact information
Jose Azar: University of Navarra, IESE & CEPR
Yue Qiu: Temple University

No 22-368, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: In this paper, we study the effects of common ownership, the extent to which firms are linked via common owners, on employee earnings in U.S. local labor markets. Between 1999 and 2017, common ownership in local labor markets has more than doubled. Panel regressions show that employee earnings in a local labor market are negatively associated with common ownership. To identify causal effects, we use a firm’s addition to the S&P 500 index as a shock to common ownership of its competitors in a local labor market. Using a matched difference-in-differences analysis, we find that, after a firm enters the S&P 500 index, the average annual earnings per employee of its local competitors decreases relative to the counterfactual. The effect of index inclusion shocks on employee earnings is stronger in local labor markets where the shares of S&P 500 incumbents are higher before a shock.

Keywords: Monopsony; oligopsony; labor markets; competition policy; common ownership (search for similar items in EconPapers)
JEL-codes: D40 G34 J31 J42 L40 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-com, nep-lma and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://research.upjohn.org/cgi/viewcontent.cgi?ar ... ext=up_workingpapers (application/pdf)
All working papers are copyrighted.

Related works:
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:upj:weupjo:22-368

Access Statistics for this paper

More papers in Upjohn Working Papers from W.E. Upjohn Institute for Employment Research 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA. Contact information at EDIRC.
Bibliographic data for series maintained by ().