Concentration in US Labor Markets: Evidence From Online Vacancy Data
Using data on the near-universe of online US job vacancies collected by Burning Glass Technologies in 2016, we calculate labor market concentration using the Herfindahl-Hirschman index (HHI) for each commuting zone by 6-digit SOC occupation. The average market has an HHI of 4,378, or the equivalent of 2.3 recruiting employers. 60% of labor markets are highly concentrated (above 2,500 HHI) according to the DOJ/FTC guidelines. Highly concentrated markets account for 20% of employment. For manufacturing industries, we show that labor market concentration is distinct from product market concentration, and is negatively correlated with wages in each industry’s top occupation.
José Azar gratefully acknowledges the financial support of Secretaria d’Universitats I Recerca del Departament d’Empresa I Coneixement de la Generalitat de Catalunya. Ref.2016 BP00358. Steinbaum acknowledges the support of the Ewing Marion Kauffman Foundation. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
- Two studies suggest that an increase in employers' monopsony power is associated with lower wages. Stagnant wages and a...
José Azar & Ioana Marinescu & Marshall Steinbaum & Bledi Taska, 2020. "Concentration in US labor markets: Evidence from online vacancy data," Labour Economics, vol 66.