Market power and wage inequality

Shubhdeep Deb, Jan Eeckhout, Aseem Patel, Lawrence Warren

We propose a theory of how market power affects wage inequality. We ask how goods and labor market power jointly affect the level of wages, the Skill Premium, and wage inequality. We then use detailed microdata from the US Census between 1997 and 2016 to estimate the parameters of labor supply, technology and the market structure. We find that a less competitive market structure lowers the wage level, contributes 7% to the rise in the Skill Premium and accounts for half of the increase in between-establishment wage variance.

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Year of publication:	[2022]
Authors:	Deb, Shubhdeep ; Eeckhout, Jan ; Patel, Aseem ; Warren, Lawrence
Publisher:	[London] : Institute for Fiscal Studies
Subject:	Market Power \| Wage Inequality \| Skill Premium \| Technological Change \| Market Structure \| Endogenous Markups \| Endogenous Markdowns \| Theorie \| Theory \| Marktmacht \| Market power \| Lohnstruktur \| Wage structure \| Technischer Fortschritt \| Technological change \| Mark-up Pricing \| Mark-up pricing \| Marktstruktur \| Market structure

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Extent:	1 Online-Ressource (circa 60 Seiten) Illustrationen
Series:	Working paper. - [London] : [IFS, Institute for Fiscal Studies], ZDB-ID 3033083-X. - Vol. 22, 40
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.1920/wp.ifs.2022.4022 [DOI] hdl:10419/284210 [Handle]
Classification:	C6 - Mathematical Methods and Programming ; D3 - Distribution ; D4 - Market Structure and Pricing ; D5 - General Equilibrium and Disequilibrium ; L1 - Market Structure, Firm Strategy, and Market Performance
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013466168