Arbeitspapier

Firm market power and the earnings distribution

Using linked employer-employee data, I compute firm-level measures of the labor supply elasticity facing each private non-farm firm in the US. I provide the first direct evidence of the positive relationship between a firm's labor supply elasticity and the earnings of its workers. I also contrast the dynamic model method employed by this paper with the more traditional use of concentration ratios to measure a firm's labor market power. Finally, I construct a counterfactual earnings distribution which allows the effects of firm market power to vary across the earnings distribution.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 7342

Classification
Wirtschaft
Monopsony; Segmented Labor Markets
Labor Force and Employment, Size, and Structure
Subject
monopsony

Event
Geistige Schöpfung
(who)
Webber, Douglas A.
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2013

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Webber, Douglas A.
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2013

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