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Labor Market Concentration does not Explain the Falling Labor Share

Ben Lipsius ()

2018 Papers from Job Market Papers

Abstract: Using U.S. administrative data, this paper shows that the employment-weighted average labor market concentration has been declining since 1980 - the opposite of the change needed to explain the falling labor share. The relationship between wages and labor market concentration has also weakened (become less negative) over that time. Together, these results make labor market concentration an implausible driver of the falling labor share despite a strong, negative relationship between labor market concentration and wages.

JEL-codes: E25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2018-11-09
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