Labor Market Power, Self-Employment, and Development

Globalization and Inequality in Latin America

“…Since much of the literature on labor market power, including Felix (2021), abstracts from the informal sector, there is substantial scope to tighten the link between the modeling framework and the empirical context. A noteworthy exception is Amodio et al (2022) who estimate a model of labor market power in Peru in the presence of self-employment.…”

The Labor Market Power of Exporting Firms: Evidence from Latin America

“…While the determinants of labor market power are still under-explored, recent studies are beginning to bridge this gap. For instance, Felix (2021) investigates the effects of tariff reductions on wage markdowns, Amodio et al (2022) delve into the connection between self-employment and labor market power in Peru, and Estefan et al (2024) examine the impact of labor policies, particularly labor outsourcing in Mexico, on wage markdowns.…”

Global Labor Market Power

“…A large amount of new research has sparked new interest over labor market power in the US and other high-income countries, but evidence on these issues in the rest of the world is scant and fragmented. Existing studies focus on Brazil (Felix, 2022), China (Pham, 2023Brooks et al, 2021b), Colombia de Roux, 2022), Costa Rica (Méndez-Chacón andVan Patten, 2022;Alfaro-Ureña, Manelici and Vasquez, 2021), India (MacKenzie, 2021;Brooks et al, 2021b;Muralidharan, Niehaus and Sukhtankar, 2023), Indonesia (Brummund and Makowsky, 2023), Mexico (Estefan et al, 2024), Peru (Amodio, Medina and Morlacco, 2022), and South Africa (Bassier, 2023), all using different data and methodologies and thus not directly comparable to each other. 1 The fundamental contribution of this paper is that we leverage a global dataset of establishments and implement a consistent methodology to estimate the labor market power of firms across 82 countries.…”