Labor-Market Concentration and Labor Compensation

Yue Qiu () and Aaron Sojourner
Additional contact information
Yue Qiu: Temple University

No 12089, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper estimates the effect of labor-market concentration on labor compensation across the U.S. private sector since 2000. We distinguish between concentration in local labor markets versus local product markets, guarding against bias from confounded product-market concentration. Analysis extends beyond wages to rates of employment-based health insurance coverage. Estimates suggest negative effects of labor-market concentration on labor compensation. This comes through both reducing the human-capital level of those in the market and reducing pay conditional on human-capital level. Higher product-market concentration exacerbates and higher unionization rates mitigates these effects.

Keywords: labor-market concentration; monopsony; wages; health insurance; unions (search for similar items in EconPapers)
JEL-codes: J31 J32 J42 J51 L13 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2019-01
New Economics Papers: this item is included in nep-com and nep-ias
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Citations: View citations in EconPapers (27)

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Related works:
Journal Article: Labor-Market Concentration and Labor Compensation (2023)
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