TY - UNPB
T1 - Labour market concentration, wages and job security in Europe
AU - Bassanini, Andrea
AU - Bovini, Giulia
AU - Caroli, Eve
AU - Ferrando, Jorge Casanova
AU - Cingano, Federico
AU - Falco, Paolo
AU - Felgueroso, Florentino
AU - Jansen, Marcel
AU - Martins, Pedro S.
AU - Melo, António
AU - Oberfichtne, Michael
PY - 2023
Y1 - 2023
N2 - We investigate the impact of labour market concentration on two dimensions of job quality, namely wages and job security. We leverage rich administrative linked employer-employee data from Denmark, France, Germany, Italy, Portugal and Spain in the 2010s to provide the first comparable cross-country evidence in the literature. We show that the elasticities of wages with respect to labour market concentration are strikingly similar across countries. Increasing labour market concentration by 10.19 0.22 0.25.290.46 0.51.34 while not affecting this probability, labour market concentration has a strong negative effect on conversions to a permanent contract once hired on a temporary one. Using German and Portuguese data, we provide suggestive evidence that the similarity of our wage elasticities across countries and the greater sensitivity of job security to labour market concentration may be explained by the fact that sector-level collective bargaining is dominant in the countries we study and that it sets wages but usually not contract type.
AB - We investigate the impact of labour market concentration on two dimensions of job quality, namely wages and job security. We leverage rich administrative linked employer-employee data from Denmark, France, Germany, Italy, Portugal and Spain in the 2010s to provide the first comparable cross-country evidence in the literature. We show that the elasticities of wages with respect to labour market concentration are strikingly similar across countries. Increasing labour market concentration by 10.19 0.22 0.25.290.46 0.51.34 while not affecting this probability, labour market concentration has a strong negative effect on conversions to a permanent contract once hired on a temporary one. Using German and Portuguese data, we provide suggestive evidence that the similarity of our wage elasticities across countries and the greater sensitivity of job security to labour market concentration may be explained by the fact that sector-level collective bargaining is dominant in the countries we study and that it sets wages but usually not contract type.
KW - Labour market concentration
KW - Monopsony
KW - Wages
KW - Job security
KW - Collective bargaining
M3 - Working paper
BT - Labour market concentration, wages and job security in Europe
ER -