Yeh, Chen; Macaluso, Claudia; Hershbein, Brad - 2022
. To reach this conclusion, we exploit rich administrative data for U.S. manufacturers and estimate plant-level markdowns …—the ratio between a plant’s marginal revenue product of labor and its wage. In a competitive labor market, markdowns would be … equal to unity. Instead, we find substantial deviations from perfect competition, as markdowns average 1.53. This result …
