TY  - RPRT
        AU  - Cortes, Matias
AU  - Tschopp, Jeanne
        TI  - Rising Concentration and Wage Inequality
        PY  - 2020/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13557
        UR  - https://www.iza.org/index.php/publications/dp13557
        AB  - Wage inequality has risen in many countries over recent decades. At the same time, production has become increasingly concentrated in a small number of firms. In this paper, we show that these two phenomena are linked. Theoretically, we show that shocks that increase concentration will also lead to an increase in wage dispersion between firms. Empirically, we use industry-level data from 14 European countries over the period 1999-2016 and show robust evidence of a positive and statis-tically significant correlation between concentration and between-firm wage inequality, driven by increases in market shares and wages in high productivity firms.
        KW  - heterogeneous firms
KW  - market power
KW  - wage inequality
KW  - Europe
        ER  -