Labor Market Concentration Does Not Explain the Falling Labor Share

40 Pages Posted: 29 Nov 2018

See all articles by Ben Lipsius

Ben Lipsius

University of Michigan, College of Literature, Science and the Arts, Department of Economics, Students

Date Written: November 2018

Abstract

Using U.S. administrative data, this paper shows that the employment-weighted average labor market concentration has been declining since 1980 -- the opposite of the change needed to explain the falling labor share. The relationship between wages and labor market concentration has also weakened (become less negative) over that time. Together, these results make labor market concentration an implausible driver of the falling labor share despite a strong, negative relationship between labor market concentration and wages.

Suggested Citation

Lipsius, Ben, Labor Market Concentration Does Not Explain the Falling Labor Share (November 2018). Available at SSRN: https://ssrn.com/abstract=3279007 or http://dx.doi.org/10.2139/ssrn.3279007

Ben Lipsius (Contact Author)

University of Michigan, College of Literature, Science and the Arts, Department of Economics, Students ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States

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