Occupational mismatch and market power

• 成果类型: Article
• 署名作者: Balmaceda, Felipe
• 署名单位: Universidad Andres Bello
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2025.103536
• 发表日期: 2025
• 关键词: Labor market power; self-employment; Paid employment; skill acquisition; Skill premium; Occupational mismatch; Product market competition; Competitive fringe

摘要

This paper shows that local labor market power provides a rationale for the higher prevalence of selfemployment in developing economies relative to developed economies. Labor market power creates occupational mismatch-too many workers choose self-employment relative to the competitive benchmark. Because of labor market power, workers underinvest in skills that increase paid employment productivity and overinvest in those that enhance self-employment productivity. Under certain conditions, this exacerbates the occupational mismatch. We also consider a quantity-type product market competition model where self-employed individuals form a competitive fringe. Product-market competition increases the intensity of competition for workers and reduces occupational mismatch.