Impact of Market Concentration on Employment and Wages: A Look at the Insurance Industry

12 Pages Posted: 16 Jul 2018

See all articles by Ghanshyam Sharma

Ghanshyam Sharma

Seton Hall University

Kurt W. Rotthoff

Seton Hall University - W. Paul Stillman School of Business

Date Written: June 26, 2018

Abstract

In this study, we examine how the market concentration in the insurance industry impacts employment and wages. We use panel data, with fixed effects, to find that a higher market concentration is associated with lower employment in the industry. Additionally, we find that market concentration is associated with a lower share of wages. However, we do not find any association between concentration and average annual wage. Surprisingly we do find that market concentration is positively associated with higher total sales. Thus, we hypothesize that lower employment is not driven by the poor economic performance of the industry.

Keywords: Industry Concentration, Insurance, Jobs, Share of Labor

Suggested Citation

Sharma, Ghanshyam and Rotthoff, Kurt W., Impact of Market Concentration on Employment and Wages: A Look at the Insurance Industry (June 26, 2018). Available at SSRN: https://ssrn.com/abstract=3203103 or http://dx.doi.org/10.2139/ssrn.3203103

Ghanshyam Sharma (Contact Author)

Seton Hall University ( email )

United States
8646504947 (Phone)

Kurt W. Rotthoff

Seton Hall University - W. Paul Stillman School of Business ( email )

400 S Orange Avenue
JH 674
South Orange, NJ 07079
United States
973-761-9102 (Phone)

HOME PAGE: http://pirate.shu.edu/~rotthoku/

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