Concentration in US Labor Markets: Evidence from Online Vacancy Data
29 Pages Posted: 9 Mar 2018 Last revised: 13 Aug 2018
Date Written: August 10, 2018
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 4,378, or the equivalent of 2.3 recruiting employers. 60% of labor markets are highly concentrated (above 2,500 HHI) according to the DOJ/FTC guidelines. Highly concentrated markets account for 20% of employment. Many plausible alternative market definitions show that more than 40% of markets are highly concentrated, suggesting that employers have market power in many US labor markets.
Keywords: Monopsony, Oligopsony, Labor Markets, Competition Policy
JEL Classification: J21, J23, J42, K21, L11
Suggested Citation: Suggested Citation