Concentration in US labor markets: Evidence from online vacancy data
Ioana Marinescu (),
Marshall Steinbaum and
Labour Economics, 2020, vol. 66, issue C
Using data on the near-universe of US online job vacancies collected by Burning Glass Technologies in 2016, we calculate labor market concentration using the Herfindahl-Hirschman index (HHI) for each commuting zone by 6-digit SOC occupation. The average market has an HHI of 4,378, or the equivalent of 2.3 recruiting employers. 60% of labor markets are highly concentrated (above 2500 HHI). Highly concentrated markets account for 16% of employment. Labor market concentration is negatively correlated with wages, and there is no relationship between measured concentration and an occupation’s skill level. These indicators suggest that employer concentration is a meaningful measure of employer power in labor markets, that there is a high degree of employer power in labor markets, and also that it varies widely across occupations and geography.
Keywords: Monopsony; Oligopsony; Labor markets (search for similar items in EconPapers)
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Working Paper: Concentration in US Labor Markets: Evidence from Online Vacancy Data (2018)
Working Paper: Concentration in US Labor Markets: Evidence From Online Vacancy Data (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:66:y:2020:i:c:s0927537120300907
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