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Labor market concentration and the gender wage gap

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  • D’Angelo, Pedro
  • Guanziroli, Tomás

Abstract

We investigate the extent to which labor market power in the Brazilian formal labor market contributes to the persistence of the gender wage gap. Using linked employer-employee data (2010–2017), we perform a standard gender wage gap decomposition and introduce labor market concentration, measured by the Herfindahl–Hirschman Index, as a proxy for competition. Our findings suggest that labor market concentration plays a negligible role in explaining the gender wage gap, countering the initial hypothesis regarding labor market power. The average worker in Brazil is employed in a low-concentration market, where small associations have no meaningful impact on wages.

Suggested Citation

  • D’Angelo, Pedro & Guanziroli, Tomás, 2025. "Labor market concentration and the gender wage gap," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s016517652500326x
    DOI: 10.1016/j.econlet.2025.112489
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    References listed on IDEAS

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