Labor Market Power, Self-Employment, and Development

• 成果类型: Article
• 署名作者: Amodio, Francesco; Medina, Pamela; Morlacco, Monica
• 署名单位: McGill University; IZA Institute Labor Economics; University of Toronto; University Toronto Scarborough; University of Toronto; University of Southern California
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20230490
• 发表日期: 2025
• 页码: 3014-3057
• 关键词: informality; unemployment; monopsony; BUSINESS

摘要

This paper shows that self-employment shapes labor market power in low-income countries, with implications for industrial development. Using Peruvian data, we find that wage-setting power increases with employer concentration but less so where self-employment is more prevalent. A general equilibrium model shows that in oligopsonistic labor markets, self-employment raises the supply elasticity of wage labor, weakening employer market power. However, by the same mechanism, procompetitive policies aimed at expanding wage employment and reducing reliance on self-employment may unintentionally strengthen labor market power, undermining their objectives. (JEL J22, J23, J31, J42, L13, O14, O15)