The impact of market structure on wages, fringe benefits, and turnover.
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Albert N. Link, Professor (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: This paper examines the relationship between labor compensation and the
structure of the product market, which is measured by the industry concentration
ratio and by dummy variables for the existence and type of government
regulation. Unlike previous studies that have estimated the impact of concentration
and regulation on wages or earnings, this study extends the analysis to
include the effect of market structure on employer-provided pensions and insurance
and on voluntary labor turnover. The hypothesis that product
market power raises labor compensation is supported by empirical results
indicating that concentration increases wages and fringes but lowers voluntary
labor turnover. Regulations that set minimum prices and restrict entry
raise labor compensation, since wage premiums due to regulation are not offset
by lower pensions and insurance or higher turnover. Other forms of
regulation, such as profit regulation in public utilities, are found to reduce
labor compensation, as evidenced by higher turnover or lower wages and
fringes, or both.
The impact of market structure on wages, fringe benefits, and turnover.
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Created on 7/5/2013
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Additional Information
- Publication
- Language: English
- Date: 1983
- Keywords
- labor compensation, product market, industry concentration ratio, wage regulations, employer provided pensions, voluntary labor turnover, employer provided insurance benefits, economics, labor relations