Labor-Market Concentration and Labor Compensation

56 Pages Posted: 18 Jan 2019 Last revised: 20 Jun 2022

See all articles by Yue Qiu

Yue Qiu

Temple University

Aaron Sojourner

W.E. Upjohn Institute for Employment Research; University of Minnesota; IZA Institute of Labor Economics

Date Written: June 19, 2022

Abstract

This paper estimates the effect of labor-market concentration on labor compensation across
the U.S. private sector since 2000. We distinguish between concentration in local labor markets
versus local product markets, guarding against bias from confounded product-market concentration. Analysis extends beyond wages to rates of employment-based health insurance coverage. Estimates suggest negative effects of labor-market concentration on labor compensation. These effects are exacerbated when product-market concentration is higher or when workers are older.

Keywords: labor-market concentration, wages, health insurance, unions

JEL Classification: J31, J32, J42, L13, J51

Suggested Citation

Qiu, Yue and Sojourner, Aaron J., Labor-Market Concentration and Labor Compensation (June 19, 2022). Available at SSRN: https://ssrn.com/abstract=3312197 or http://dx.doi.org/10.2139/ssrn.3312197

Yue Qiu (Contact Author)

Temple University ( email )

Philadelphia, PA 19122
United States

Aaron J. Sojourner

W.E. Upjohn Institute for Employment Research ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States

University of Minnesota

Carlson School of Management
MN
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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