Abstract

In recent years in many OECD economies, market and employment shares have been concentrating in fewer firms and job mobility has declined in several large economies. Do these developments imply increased wage-setting power of firms, and what are the implications for overall wage growth and wage inequality? Whereas recent studies have estimated the degree of wage-setting power in different individual contexts, comparable estimates of wage-setting power and its implication for wage growth and wage inequality across OECD countries are still missing. This research collaboration aims to fill this gap by providing comparable estimates for Germany in the context of a cross-country project coordinated by the OECD. This will allow comparing monopsony power and its implications in Germany with other OECD countries, including other large EU economies.