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Firm Market Power and the Earnings Distribution

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  • Webber, Douglas A.

    ()
    (Temple University)

Abstract

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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7342.

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Length: 50 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7342

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Keywords: monopsony;

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References

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Citations

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Cited by:
  1. Depew, Briggs & Norlander, Peter & Sorensen, Todd A., 2013. "Flight of the H-1B: Inter-Firm Mobility and Return Migration Patterns for Skilled Guest Workers," IZA Discussion Papers 7456, Institute for the Study of Labor (IZA).
  2. Addison, John T. & Portugal, Pedro & Varejão, José, 2014. "Labour Demand Research: Towards a Better Match between Better Theory and Better Data," IZA Discussion Papers 8125, Institute for the Study of Labor (IZA).
  3. Webber, Douglas A., 2013. "Firm-Level Monopsony and the Gender Pay Gap," IZA Discussion Papers 7343, Institute for the Study of Labor (IZA).

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