Data and Code for: Labor Market Power and Development

Principal Investigator(s): View help for Principal Investigator(s) Tristany Armangué-Jubert, Universitat Autònoma de Barcelona; Nezih Guner, CEMFI; Alessandro Ruggieri, CUNEF

Version: View help for Version V1

Name	File Type	Size	Last Modified
Data and Code for Labor Market Power and Development			08/27/2024 06:57:AM

Project Citation:

Armangué-Jubert, Tristany, Guner, Nezih , and Ruggieri, Alessandro. Data and Code for: Labor Market Power and Development. Nashville, TN: American Economic Association [publisher], 2025. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-05-09. https://doi.org/10.3886/E202183V1

Project Description

Summary:

Imperfect competition in labor markets can lead to efficiency losses and lower aggregate output. This paper examines how variations in labor market competitiveness may account for differences in GDP per capita among countries. By structurally estimating an oligopsony model with free entry across different development stages, we find that labor market power increases with GDP per capita. Wage mark-downs vary from 54% in low-income countries to around 24% in the richest ones. If labor markets in poorer countries were as competitive as in more developed ones, their output per capita could rise by up to 44%.

Scope of Project

JEL Classification:
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      J42 Monopsony; Segmented Labor Markets
      L13 Oligopoly and Other Imperfect Markets
      O11 Macroeconomic Analyses of Economic Development

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Published Versions

V1 [2025-05-09]

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