Labor-Market Concentration and Labor Compensation

77 Pages Posted: 18 Jan 2019

See all articles by Yue Qiu

Yue Qiu

Temple University

Aaron Sojourner

University of Minnesota; IZA Institute of Labor Economics

Date Written: January 8, 2019

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. This comes through both reducing the human-capital level of those in the market and reducing pay conditional on human-capital level. Higher product-market concentration exacerbates and higher unionization rates mitigates these effects.

Keywords: labor-market concentration, monopsony, 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 (January 8, 2019). 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

University of Minnesota ( email )

Carlson School of Management
321 19th Ave S, 3-300
Minneapolis, MN 55455
United States
6126249521 (Phone)

IZA Institute of Labor Economics ( email )

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

Register to save articles to
your library

Register

Paper statistics

Downloads
154
Abstract Views
1,066
rank
191,137
PlumX Metrics