Thoresson, Anna

Employer concentration and wages for specialized workers - American Economic Journal: Applied Economics - 16(1), Jan, 2024: p.447-479

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. – Reproduced

https://www.aeaweb.org/articles?id=10.1257/app.20210280

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