Concentration in Us Labor Markets: Evidence from Online Vacancy Data

38 Pages Posted: 12 Mar 2018 Last revised: 28 Aug 2024

See all articles by José Azar

José Azar

University of Navarra, IESE Business School; CEPR; ECGI

Ioana Elena Marinescu

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

Marshall Steinbaum

University of Utah Department of Economics

Bledi Taska

Lightcast

Multiple version iconThere are 3 versions of this paper

Date Written: March 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. For manufacturing industries, we show that labor market concentration is distinct from product market concentration, and is negatively correlated with wages in each industry’s top occupation.

Suggested Citation

Azar, José and Marinescu, Ioana Elena and Steinbaum, Marshall and Taska, Bledi, Concentration in Us Labor Markets: Evidence from Online Vacancy Data (March 2018). NBER Working Paper No. w24395, Available at SSRN: https://ssrn.com/abstract=3138347

José Azar (Contact Author)

University of Navarra, IESE Business School ( email )

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CEPR ( email )

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HOME PAGE: http://https://sites.google.com/site/joseazar/

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Ioana Elena Marinescu

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

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National Bureau of Economic Research (NBER) ( email )

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Marshall Steinbaum

University of Utah Department of Economics ( email )

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Salt Lake City, UT 84112
United States

HOME PAGE: http://https://faculty.utah.edu/u6024209-Marshall_Steinbaum/hm/index.hml

Bledi Taska

Lightcast ( email )

Boston, MA 02110
United States

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