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Labour market concentration and posted wages: Evidence on wage-setting power from a large online recruitment platform in China

Author

Listed:
  • Liu, Xuan
  • Zeng, Xiangquan

Abstract

Although labour market concentration has received growing academic attention, evidence from developing countries remains limited. This study examines labour market concentration in China using 2016–2022 data from a large online recruitment platform. The results show that labour market concentration significantly reduces posted wages, with particularly pronounced effects for lower-wage positions. Firms with large labour market shares exhibit greater wage-setting power and post significantly lower wages than other employers. In addition, labour market concentration in platform-based employment exerts a stronger downward effect on posted wages than in standard employment. Overall, the findings provide both theoretical and empirical support for policies aimed at mitigating monopsony power in labour markets.

Suggested Citation

  • Liu, Xuan & Zeng, Xiangquan, 2026. "Labour market concentration and posted wages: Evidence on wage-setting power from a large online recruitment platform in China," Economic Modelling, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:ecmode:v:157:y:2026:i:c:s0264999326000118
    DOI: 10.1016/j.econmod.2026.107482
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    Keywords

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    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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