Labor market concentration and the gender wage gap

D’Angelo, Pedro and Tomás Guanziroli

Economics Letters, 2025, vol. 255, issue C

Abstract: We investigate the extent to which labor market power in the Brazilian formal labor market contributes to the persistence of the gender wage gap. Using linked employer-employee data (2010–2017), we perform a standard gender wage gap decomposition and introduce labor market concentration, measured by the Herfindahl–Hirschman Index, as a proxy for competition. Our findings suggest that labor market concentration plays a negligible role in explaining the gender wage gap, countering the initial hypothesis regarding labor market power. The average worker in Brazil is employed in a low-concentration market, where small associations have no meaningful impact on wages.

Keywords: Gender wage gap; Labor market concentration; Labor market power (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s016517652500326x

DOI: 10.1016/j.econlet.2025.112489

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