TY  - RPRT
        AU  - Amodio, Francesco
AU  - Brancati, Emanuele
AU  - Brummund, Peter
AU  - Roux, Nicolás de
AU  - Maio, Michele Di
        TI  - Global Labor Market Power
        PY  - 2024/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16823
        UR  - https://www.iza.org/index.php/publications/dp16823
        AB  - We estimate the labor market power of over 13,000 manufacturing establishments across 82 low and middle-income countries around the world. Within local labor markets, larger and more productive firms have higher wage markdowns and pay lower wages. Labor market power across countries exhibits a mild non-linear relationship with GDP per capita, entirely driven by a strong hump-shaped relationship with the share of self-employed workers. Labor market institutions fully account for the hump shape: in countries with unemployment protection, wage markdowns increase with the share of self-employment while the opposite is true in countries without it. We explain this finding through the lens of a simple oligopsonistic labor market model with frictions. Self-employment prevalence correlates with the elasticity of labor supply to the wage paid, and labor market institutions can change the sign of this relationship.
        KW  - labor market power
KW  - self-employment
KW  - development
KW  - labor market institutions
        ER  -