Employer Consolidation and Wages: Evidence from Hospitals

• 成果类型: Article
• 署名作者: Prager, Elena; Schmitt, Matt
• 署名单位: Northwestern University; University of California System; University of California Los Angeles
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20190690
• 发表日期: 2021
• 页码: 397-427
• 关键词: OWNERSHIP CHANGES; MARKET; monopsony; POWER; mergers; IMPACT

摘要

We test whether wage growth slows following employer consolidation by examining hospital mergers. We find evidence of reduced wage growth in cases where both (i) the increase in concentration induced by the merger is large and (ii) workers' skills are industry-specific. In all other cases, we fail to reject zero wage effects. We consider alternative explanations and find that the observed patterns are unlikely to be explained by merger-related changes besides labor market power. Wage growth slowdowns are attenuated in markets with strong labor unions, and wage growth does not decline after out-of-market mergers that leave local employer concentration unchanged.