Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177183
Authors: 
Azar, José
Marinescu, Ioana E.
Steinbaum, Marshall
Taska, Bledi
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11379
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using data on the near-universe of online US job vacancies collected by Burning Glass Technologies in 2016, we calculate labor market concentration using the Herfindahl-Hirschman index (HHI) for each commuting zone by 6-digit SOC occupation. The average market has an HHI of 3,953, or the equivalent of 2.5 recruiting employers. 54% of labor markets are highly concentrated (above 2,500 HHI) according to the DOJ/FTC guidelines. Highly concentrated markets account for 17% of employment. All plausible alternative market definitions show that more than 33% of markets are highly concentrated, suggesting that employers have market power in many US labor markets.
Subjects: 
monopsony
oligopsony
labor markets
competition policy
JEL: 
J21
J23
J42
K21
L11
Document Type: 
Working Paper

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