Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177058
Authors: 
Azar, José
Marinescu, Ioana E.
Steinbaum, Marshall
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11254
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 over 8,000 geographic-occupational labor markets in the US. Based on the DOJ-FTC horizontal merger guidelines, the average market is highly concentrated. Using a panel IV regression, we show that going from the 25th percentile to the 75th percentile in concentration is associated with a 17% decline in posted wages, suggesting that concentration increases labor market power.
Subjects: 
monopsony
oligopsony
labor markets
competition policy
JEL: 
J30
J42
L40
Document Type: 
Working Paper

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