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Employer Concentration and Wages for Specialized Workers

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  • Anna Thoresson

Abstract

This paper studies how wages respond to a sudden change in employer concentration by using the deregulation of the Swedish pharmacy industry. The reform involved a substantial and policy-driven increase in the number of employers that varied by local labor market. Exploiting this variation, elasticities of wages with respect to labor market concentration are estimated between −0.025 and −0.061. The positive wage effects from reduced employer concentration are most prevalent for more mobile workers as well as younger and foreign-born workers. Overall, the paper finds that employer concentration matters for wages in a context where skills are industry specific.

Suggested Citation

  • Anna Thoresson, 2024. "Employer Concentration and Wages for Specialized Workers," American Economic Journal: Applied Economics, American Economic Association, vol. 16(1), pages 447-479, January.
    • Handle: RePEc:aea:aejapp:v:16:y:2024:i:1:p:447-79
    DOI: 10.1257/app.20210280
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    References listed on IDEAS

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    1. Ben Jann, 2018. "Color palettes for Stata graphics," Stata Journal, StataCorp LP, vol. 18(4), pages 765-785, December.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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