Explaining the stagnant wage in USA using HHI

map showing market concentration in USA
HHI by USA county

The NBER digest highlights that one of the factors contributing to the stagnant wage and declining labor income to GDP is the relative bargaining position of the workers and firms. NBER digest highlights two recent papers that have studied this issue in greater detail and have used HHI as a measure to calculate the concentration of industry and their bargaining power.

In my older post i have shown calculation of HHI in R.

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