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dc.titleWages, Market Power and Labor Productivity: Evidence from Uruguay
dc.contributor.authorCasacuberta, Carlos
dc.contributor.authorGandelman, Néstor
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2025-02-20T00:02:00
dc.date.issue2025-02-20T00:02:00
dc.description.abstractThis paper examines the relationship between wages and market power at the firm level. We derive firm-specific measures of labor market power and present a natural decomposition of wage changes into shifts in labor market power and labor productivity. Our findings indicate that 50-60 percent of the variation in nominal wages is attributable to price changes, while the remaining portion, reflecting changes in real wages, is explained mainly by changes in market power and, to a lesser extent, by changes in labor productivity. Moreover, we show that firms with greater market power tend to pay higher wages, suggesting rent-sharing between employers and employees, at the cost of higher prices for consumers.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0013408
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Wages-Market-Power-and-Labor-Productivity--Evidence-from-Uruguay.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectWage
dc.subjectSmall Business
dc.subjectLabor Market
dc.subjectLabor
dc.subjectProductivity
dc.subjectLabor Force
dc.subjectLabor Productivity
dc.subject.jelcodeL10 - Market Structure, Firm Strategy, and Market Performance: General
dc.subject.keywordsPrice Markups;Labor market power
idb.identifier.pubnumberIDB-WP-01682
idb.operationRG-K1198
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