Comparing Labor Market Concentration Measures Using the LEHD and LBD

David Wasser

CES Technical Notes Series from Center for Economic Studies, U.S. Census Bureau

Abstract: The recent literature on the role of labor market power has highlighted the importance of labor market concentration, a proxy for market power, in wage determination. The most commonly used measure of labor market concentration used in this literature is the Herfindahl-Hirschmann Index (HHI). This technical note discusses the construction of HHIs using Longitudinal Employer-Household Dynamics (LEHD) and Longitudinal Business Database (LBD) data and the relative strengths of each source.

Keywords: LBD; LEHD ECF (search for similar items in EconPapers)
Date: 2026-04
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