Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314642 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17745
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using register data, we document that the average German labor market, defined by hires in combinations of 3-digit occupations, requirement levels, and commuting zones, is highly concentrated (HHI=0.257). By EU antitrust thresholds, 56 percent of these labor markets feature moderate or high concentration, covering 9 percent of workers. Concentration remained relatively stable between 2012 and 2023. The labor market delineation strongly affects the measured level of concentration but not its evolution, whereas the choice of the firm size variable has little influence. Concentration differs starkly across occupations and regions, and workers in complex jobs experience the highest levels of concentration.
Subjects: 
monopsony power
labor market concentration
occupations
JEL: 
J42
L10
J60
Document Type: 
Working Paper

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