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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

WordPress.com.

Up ↑

%d bloggers like this: