Concentration in US Labor Markets: Evidence from Online Vacancy Data

29 Pages Posted: 9 Mar 2018 Last revised: 13 Aug 2018

José Azar

University of Navarra, IESE Business School

Ioana Elena Marinescu

University of Pennsylvania - School of Social Policy & Practice; National Bureau of Economic Research (NBER)

Marshall Steinbaum

Roosevelt Institute

Bledi Taska

Burning Glass Technologies

Multiple version iconThere are 3 versions of this paper

Date Written: August 10, 2018

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 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

Azar, José and Marinescu, Ioana Elena and Steinbaum, Marshall and Taska, Bledi, Concentration in US Labor Markets: Evidence from Online Vacancy Data (August 10, 2018). Available at SSRN: https://ssrn.com/abstract=3133344 or http://dx.doi.org/10.2139/ssrn.3133344

José Azar

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Ioana Elena Marinescu (Contact Author)

University of Pennsylvania - School of Social Policy & Practice ( email )

3701 Locust Walk
Philadelphia, PA 19104-6214
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Marshall Steinbaum

Roosevelt Institute ( email )

1789 Lanier Pl. NW Apt. 1
Washington, DC 20009
United States

Bledi Taska

Burning Glass Technologies ( email )

One Lewis Wharf
Boston, MA 02110
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
430
rank
59,065
Abstract Views
2,002
PlumX