Labor Market Concentration

José Azar, Ioana Marinescu and Marshall Steinbaum

Journal of Human Resources, 2022, vol. 57, issue S, s167-s199

Abstract: A product market is concentrated when a few firms dominate the market. Similarly, a labor market is concentrated when a few firms dominate hiring in the market. Using data from the leading employment website CareerBuilder.com, we calculate labor market concentration for more than 8,000 geographic–occupational labor markets in the United States. Based on the Department of Justice–Federal Trade Commission horizontal merger guidelines, the average market is highly concentrated. Going from the 25th percentile to the 75th percentile in concentration is associated with a 5 percent (OLS) to 17 percent (IV) decline in posted wages, suggesting that concentration increases labor market power.

JEL-codes: J23 J31 J42 J63 L41 (search for similar items in EconPapers)
Date: 2022
Note: DOI: 10.3368/jhr.monopsony.1218-9914R1
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Citations: View citations in EconPapers (67)

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Related works:
Working Paper: Labor Market Concentration (2017)
Working Paper: Labor Market Concentration (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:57:y:2022:i:s:p:s167-s199

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