IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/doi10.1086-726819.html
   My bibliography  Save this article

Firm Market Power, Worker Mobility, and Wages in the US Labor Market

Author

Listed:
  • Sadhika Bagga

Abstract

Worker mobility and wages have declined in the United States amid rising employer market power. I propose a theory of the labor market in which a decrease in employer competition, characterized by fewer firms per worker, drives the decline in worker mobility and wages. A finite and decreasing number of employers exert market power by excluding their offers from the outside options of their employees. This reduces the value of workers’ outside options and, consequently, their wages and transitions across employers. I quantify the model to explain the long-run decline in worker mobility and wages and examine its cross-sectional implications.

Suggested Citation

  • Sadhika Bagga, 2023. "Firm Market Power, Worker Mobility, and Wages in the US Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 41(S1), pages 205-256.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/726819
    DOI: 10.1086/726819
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/726819
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/726819
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/726819?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jose Garcia-Louzao & Alessandro Ruggieri, 2023. "Labor Market Competition and Inequality," CESifo Working Paper Series 10829, CESifo.
    2. Kali, Raja & Liu, Andrew Yizhou, 2024. "Labor market power and worker turnover," European Economic Review, Elsevier, vol. 163(C).
    3. Dalmazzo, Alberto & Leombruni, Roberto & Razzolini, Tiziano, 2023. "Anticipation Effects of EU Accession on Immigrants' Labour Market Outcomes," IZA Discussion Papers 16614, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:doi:10.1086/726819. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.