The relationship between labor market concentration and wages in Mexico

  • Ana Cristina Oseguera Sauri El Colegio de México
Keywords: Concentración en el mercado laboral, competencia imperfecta, salarios, monopsonio, productividad
JEL Classification: E24, E26, J31, J42, L4

Abstract

This paper presents a panel data estimation of the relationship between labor marker concentration and wages. Labor market concentration is measured using the Herfindahl-Hirschman Index (HHI) of employment. In the formal sector, results show that an increase of one standard deviation (3,566 points) of the HHI is associated with an increase in wages of between 2.1% and 2.9%. This elasticity depends on labor productivity. In the informal sector, results show that an increase of one standard deviation (3,242 points) of the HHI is associated with an increase in wages of between 4.5% and 6%. This elasticity depends on capital intensity.

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Published
10-02-2022
How to Cite
Oseguera SauriA. (2022). The relationship between labor market concentration and wages in Mexico. Estudios Económicos, 37(1). https://doi.org/10.24201/ee.v37i1.426
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