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Labor Market Concentration and Stayers'Wages: Evidence from France

Author

Listed:
  • Andrea Bassanini

    (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Cyprien Batut

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Eve Caroli

    (Legos - Laboratoire d'Economie et de Gestion des Organisations de Santé - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

We investigate the impact of labor market concentration on stayers' wages, where stayers are defined as individuals who remain employed in the same firm for at least two consecutive years. Using administrative data for France, we show that the elasticity of stayers' wages to labor market concentration is negative but small (about -0.014) once controlling for firm productivity, product market competition and match-specific heterogeneity. Given the strong wage rigidities characterizing the French labor market, this estimate can be seen as a lower bound of the effect of labor market concentration on stayers' wages in an international perspective.

Suggested Citation

  • Andrea Bassanini & Cyprien Batut & Eve Caroli, 2023. "Labor Market Concentration and Stayers'Wages: Evidence from France," Working Papers hal-04244671, HAL.
    • Handle: RePEc:hal:wpaper:hal-04244671
    Note: View the original document on HAL open archive server: https://hal.science/hal-04244671
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    References listed on IDEAS

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    Cited by:

    1. Marinescu, Ioana & Ouss, Ivan & Pape, Louis-Daniel, 2021. "Wages, hires, and labor market concentration," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 506-605.
    2. Jorge Davalos & Ekkehard Ernst, 2021. "How has labour market power evolved? Comparing labour market monopsony in Peru and the United States," Papers 2103.15183, arXiv.org.
    3. Boeri, Tito & Garnero, Andrea & Luisetto, Lorenzo Giovanni, 2023. "Non-compete Agreements in a Rigid Labour Market: The Case of Italy," IZA Discussion Papers 16021, Institute of Labor Economics (IZA).
    4. Axelle Arquié & Julia Bertin, 2022. "The Heterogenous Effects of Employers’ Concentration on Wages: Better Sorting or Uneven Rent Extracting?," Working Papers 2022-09, CEPII research center.
    5. Boeri, Tito Michele & Garnero, Andrea & Luisetto, Lorenzo G., 2023. "Non-compete agreements in a rigid labour market: the case of Italy," LSE Research Online Documents on Economics 121338, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    DT LEDa-LEGOS; Labor market concentration; Monopsony; Wages; Stayers; Match-specific heterogeneity;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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