Data and Code for: Labor Market Power, Self-Employment, and Development

Principal Investigator(s):  View help for Principal Investigator(s) Francesco Amodio, McGill University; Pamela Medina, University of Toronto; Monica Morlacco, University of Southern California

Version:  View help for Version V1

Name File Type Size Last Modified
  facts-stata 07/17/2025 09:44:PM
  model-matlab 07/18/2025 06:52:PM
  output 07/17/2025 10:10:PM
README.pdf application/pdf 228.4 KB 07/17/2025 04:55:PM

Project Citation: 

Amodio, Francesco, Medina, Pamela, and Morlacco, Monica. Data and Code for: Labor Market Power, Self-Employment, and Development. Nashville, TN: American Economic Association [publisher], 2025. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-08-18. https://doi.org/10.3886/E219907V1

Project Description

Summary:  View help for Summary This replication package contains the code and data to replicate all Tables and Figures in the paper "Labor Market Power, Self-Employment, and Development" by Amodio, Medina and Morlacco. Abstract: This paper shows that self-employment shapes labor market power in low-income countries, with implications for industrial development. Using Peruvian data, we find that wage-setting power increases with employer concentration but less so where self-employment is more prevalent. A general equilibrium model shows that in oligopsonistic labor markets, self-employment raises the supply elasticity of wage labor, weakening employer market power. However, by the same mechanism, pro-competitive policies aimed at expanding wage employment and reducing reliance on self-employment may unintentionally strengthen labor market power, undermining their objectives. 
Funding Sources:  View help for Funding Sources Private Enterprise Development in Low-Income Countries (PEDL-CEPR) (ERG6500); Social Science and Humanities Research Council, Government of Canada (Insight Grant 435-2023-0219)

Scope of Project

Subject Terms:  View help for Subject Terms labor market power; self-employment; industrial development
JEL Classification:  View help for JEL Classification
      J20 Demand and Supply of Labor: General
      J30 Wages, Compensation, and Labor Costs: General
      J42 Monopsony; Segmented Labor Markets
      L10 Market Structure, Firm Strategy, and Market Performance: General
      O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
      O54 Economywide Country Studies: Latin America; Caribbean
Geographic Coverage:  View help for Geographic Coverage Peru
Time Period(s):  View help for Time Period(s) 2004 – 2011
Universe:  View help for Universe Manufacturing firms and workers in Peru
Data Type(s):  View help for Data Type(s) census/enumeration data; survey data


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Published Versions

V1 [2025-08-18]

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