Global Labor Market Power

Arbeitspapier

We estimate the labor market power of over 13,000 manufacturing establishments across 82 low and middle-income countries around the world. Within local labor markets, larger and more productive firms have higher wage markdowns and pay lower wages. Labor market power across countries exhibits a mild non-linear relationship with GDP per capita, entirely driven by a strong hump-shaped relationship with the share of self-employed workers. Labor market institutions fully account for the hump shape: in countries with unemployment protection, wage markdowns increase with the share of self-employment while the opposite is true in countries without it. We explain this finding through the lens of a simple oligopsonistic labor market model with frictions. Self-employment prevalence correlates with the elasticity of labor supply to the wage paid, and labor market institutions can change the sign of this relationship.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 16823

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand and Supply of Labor: General ; Wages, Compensation, and Labor Costs: General ; Monopsony; Segmented Labor Markets ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: labor market power ; self-employment ; development ; labor market institutions

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Amodio, Francesco ; Brancati, Emanuele ; Brummund, Peter ; de Roux, Nicolás ; Di Maio, Michele
• Ereignis: Veröffentlichung
• (wer): Institute of Labor Economics (IZA)
• (wo): Bonn
• (wann): 2024

Weitere Informationen

• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ