Labor market power in Spain

José Azar () and Javier Sanz-Espín ()
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José Azar: University of Navarra
Javier Sanz-Espín: Toulouse School of Management and University of Navarra

SERIEs: Journal of the Spanish Economic Association, 2025, vol. 16, issue 2, No 2, 233-256

Abstract: Abstract This paper provides a comprehensive analysis of labor market power in Spain, focusing on the period from 1997 to 2021. Using detailed firm-level data from the Central de Balances Integrada (CBI) of the Bank of Spain, we estimate markdowns—a direct measure of labor market power—across various sectors, firm sizes, and regions. Our findings show that there was a notable decline in markdowns following the 2008 financial crisis. However, this trend has partially reversed in recent years, suggesting a resurgence of labor market power, particularly among larger firms. We find that firms with a higher proportion of temporary workers or female workers tend to have higher markdowns.

Keywords: Monopsony; Markdown estimation; Spain (search for similar items in EconPapers)
JEL-codes: J42 L43 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13209-025-00307-y

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