Labour market power and between-firm wage (in)equality / Matthias Mertens
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Discovery
1758318899
URN
urn:nbn:de:gbv:3:2-137617
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), Member of the Leibniz Association, [2021]
Umfang
1 Online-Ressource (III, 85 Seiten, 2,33 MB) : Diagramme
Ausgabevermerk
This draft: May 18, 2021
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
I study how labour market power affects firm wage differences using German manufacturing sector firm-level data (1995-2016). In past decades, labour market power increasingly moderated rising between-firm wage inequality. This is becausehigh-paying firms possess high and increasing labour market power and pay wages below competitive levels, whereas low-wage firms pay competitive wages. Over time, large, high-wage, high-productivity firms generate increasingly large labour market rents while selling on competitive product markets. This provides novel insights on why such "superstar firms" are profitable and successful. Using micro-aggregated data covering most economic sectors, I validate my results for ten other European countries.
Schriftenreihe
IWH-CompNet discussion papers ; 2020, no. 1 (August 2020) ppn:887996302