RT Journal Article
SR Electronic
T1 Labor Market Concentration
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP S167
OP S199
DO 10.3368/jhr.monopsony.1218-9914R1
VO 57
IS S
A1 José Azar
A1 Ioana Marinescu
A1 Marshall Steinbaum
YR 2022
UL http://jhr.uwpress.org/content/57/S/S167.abstract
AB A product market is concentrated when a few firms dominate the market. Similarly, a labor market is concentrated when a few firms dominate hiring in the market. Using data from the leading employment website CareerBuilder.com, we calculate labor market concentration for more than 8,000 geographic–occupational labor markets in the United States. Based on the Department of Justice–Federal Trade Commission horizontal merger guidelines, the average market is highly concentrated. Going from the 25th percentile to the 75th percentile in concentration is associated with a 5 percent (OLS) to 17 percent (IV) decline in posted wages, suggesting that concentration increases labor market power.