Munich Personal RePEc Archive

From Product Concentration to Local Labor Market Outcomes: The Effect on Industry Wages

Petkov, Ivan (2019): From Product Concentration to Local Labor Market Outcomes: The Effect on Industry Wages.

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Abstract

In this paper, I examine whether higher product market power can affect labor earnings through its effect on overall labor demand in distinct markets, as a set of dominant firms replaces employment by competitors. To identify relative labor demand shifts, I focus on variations in the spatial concentration within an industry following increases in market power.

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