How the Rise of Labor Market Power Helps Explain the Fall of US Manufacturing Employment

How the Rise of Labor Market Power Helps Explain the Fall of US Manufacturing Employment

Cars on production line in factory. Photo by alvarez, via Getty Images A new working paper explores the increase in labor market power in the US and what’s driving it. It shows manufacturing workers were paid their competitive value in 1972, but only about 50 cents on the dollar by 2014, pointing to technological change as the key driver.

Does antitrust have a labor market problem? The last few years have seen growing interest among academic scholars in the causes and effects of concentration in US labor markets. Concurrently (and not unrelated), there has been an explosion of interest […]

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