THE CONCENTRATION-LABOR EARNINGS HYPOTHESIS: NEW EVIDENCE FROM THE U.S. MANUFACTURING INDUSTRIES

This study tests the concentration Labor earnings hypothesis for the U.S. manufactoring Industries using new data.The concentration labor earnings hypothesis suggests that Industrial concentration has a positive Association with labor earnings after adjusting for human capital, personal and other influences. The results of the study give support to the concentration labor earnings hypothesis: Workers in more concentrated Industries earn wages above what they could earn in less concentrated or competitive Industries all else being equal. The results also indicate that the interaction between concentration and unionization does not play a significant role in determining the relationship between concentration and wages.

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