Firm Market Power and the Earnings Distribution

Douglas Webber

No 7342, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using linked employer-employee data, I compute firm-level measures of the labor supply elasticity facing each private non-farm firm in the US. I provide the first direct evidence of the positive relationship between a firm's labor supply elasticity and the earnings of its workers. I also contrast the dynamic model method employed by this paper with the more traditional use of concentration ratios to measure a firm's labor market power. Finally, I construct a counterfactual earnings distribution which allows the effects of firm market power to vary across the earnings distribution.

Keywords: monopsony (search for similar items in EconPapers)
JEL-codes: J21 J42 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2013-04
New Economics Papers: this item is included in nep-bec, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published - published in: Labour Economics, 2015, 35, 123-134

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Related works:
Journal Article: Firm market power and the earnings distribution (2015)
Working Paper: Firm Market Power and the Earnings Distribution (2011)
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