Labour market concentration and wage inequality: A cross-country descriptive analysis

This paper examines the relationship between labour market concentration and wage inequality using global survey data for the period 2006–2022. The results show that higher labour market concentration is associated with higher wage inequality, especially in the top half of the wage distribution. However, labour market institutions such as trade unions, collective bargaining and minimum wages appear to mitigate this trend. Finally, the study finds that the association between labour market concentration and wage inequality is stronger in developing countries than in developed countries.