Labor Market Power and Between-Firm Wage (In)Equality

Mertens, Matthias

doi:10.1016/j.ijindorg.2023.103005

International Journal of Industrial Organization

2023

DOI: 10.1016/j.ijindorg.2023.103005

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Labor Market Power and Between-Firm Wage (In)Equality

Matthias Mertens

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2024

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Cited by 2 publications

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Do climate change policies affect labour market distortions? Empirical evidence from China's low-carbon city pilots

Shen,

Yang,

Xing

2024

Climate Policy

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Do climate change policies affect labour market distortions? Empirical evidence from China's low-carbon city pilots

Shen,

Yang,

Xing

2024

Climate Policy

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Rising concentration and wage inequality

Cortes,

Tschopp

2024

Scandinavian J Economics

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Wage inequality has risen in many countries over recent decades. At the same time, production has become increasingly concentrated in a small number of firms. In this paper, we show that these two phenomena are linked. Theoretically, we show that an increase in consumer price sensitivity will lead to an increase in the sectoral concentration of revenues and employment, as well as an increase in wage dispersion between firms within industries. Empirically, we use industry‐level data from 14 European countries over the period 1999–2016 and show robust evidence of a positive and statistically significant correlation between concentration and between‐firm wage inequality. We show that this is driven by higher market shares and higher wages in high‐productivity firms within more concentrated sectors.This article is protected by copyright. All rights reserved.

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Labor Market Power and Between-Firm Wage (In)Equality

Cited by 2 publications

References 39 publications

Do climate change policies affect labour market distortions? Empirical evidence from China's low-carbon city pilots

Do climate change policies affect labour market distortions? Empirical evidence from China's low-carbon city pilots

Rising concentration and wage inequality

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