Labour Market Concentration, Wages and Job Security in Europe

• DOI: 10.2139/ssrn.4114807
• Publication Date: 2022-05-28T12:24:38Z
• Authors: Andrea Bassanini; Giulia Bovini; Eve Caroli; Jorge Fernando; Federico Cingano; Paolo Falco; Florentino José F...; Marcel Jansen; Pedro S. Martins; António Melo; Michael Oberfichtner; Martin Popp
• Keywords: Job security

We investigate the impact of labour market concentration on two dimensions job quality, namely wages and security. leverage rich administrative linked employer-employee data from Denmark, France, Germany, Italy, Portugal Spain in 2010s to provide first comparable cross-country evidence literature. Controlling for productivity local product concentration, we show that elasticities with respect are strikingly similar across countries: increasing by 10% reduces 0.19% 0.22% 0.25% 0.29% Denmark. Regarding security, find an increase probability being hired a permanent contract 0.46% 0.51% Germany 2.34% Portugal. While not affecting this Italy Spain, significantly converted once temporary one. Our results suggest considering only effect underestimates its overall quality hence resulting welfare loss workers.