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Labor Market Concentration and Stayers' Wages: Evidence from France

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  • Bassanini, Andrea

    (OECD)

  • Batut, Cyprien

    (Paris School of Economics)

  • Caroli, Eve

    (PSL Université Paris Dauphine)

Abstract

We investigate the impact of labor market concentration on stayers' wages, where stayers are defined as individuals who were already employed in the same firm the year before. Using administrative data for France, we show that the elasticity of stayers' wages to labor market concentration ranges between -0.0185 and -0.0230, depending on the instrument we use, and controlling for labor productivity and local product market concentration. This represents between about two thirds and three fourth of the elasticity we estimate for new hires. Given the strong wage rigidities characterizing the French labor market, this estimate can be considered a lower bound of the effect of labor market concentration on stayers' wages in an international perspective.

Suggested Citation

  • Bassanini, Andrea & Batut, Cyprien & Caroli, Eve, 2021. "Labor Market Concentration and Stayers' Wages: Evidence from France," IZA Discussion Papers 14912, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14912
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    References listed on IDEAS

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    Cited by:

    1. Marinescu, Ioana & Ouss, Ivan & Pape, Louis-Daniel, 2021. "Wages, hires, and labor market concentration," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 506-605.
    2. Jérémy Tanguy & Sylvie Blasco & Johanne Bacheron & Eva Moreno Galbis, 2024. "Labor market concentration and gender gaps," French Stata Users' Group Meetings 2024 31, Stata Users Group.
    3. Jorge Davalos & Ekkehard Ernst, 2021. "How has labour market power evolved? Comparing labour market monopsony in Peru and the United States," Papers 2103.15183, arXiv.org.
    4. Boeri, Tito & Garnero, Andrea & Luisetto, Lorenzo Giovanni, 2023. "Non-compete Agreements in a Rigid Labour Market: The Case of Italy," IZA Discussion Papers 16021, Institute of Labor Economics (IZA).
    5. Axelle Arquié & Julia Bertin, 2022. "The Heterogenous Effects of Employers’ Concentration on Wages: Better Sorting or Uneven Rent Extracting?," Working Papers 2022-09, CEPII research center.
    6. Muscio, Alessandro & Vallanti, Giovanna, 2024. "The gender gap in PhD entrepreneurship: Why balancing employment in academia really matters," Research Policy, Elsevier, vol. 53(1).

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    More about this item

    Keywords

    labor market concentration; monopsony; wages; stayers;
    All these keywords.

    JEL classification:

    • 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
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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