蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Labor Market Power, Self-Employment, and Development
蝌蚪网 Review
(pp. 3014–57)
Abstract
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.Citation
Amodio, Francesco, Pamela Medina, and Monica Morlacco. 2025. "Labor Market Power, Self-Employment, and Development." 蝌蚪网 Review 115 (9): 3014–57. DOI: 10.1257/aer.20230490Additional Materials
JEL Classification
- J22 Time Allocation and Labor Supply
- J23 Labor Demand
- J31 Wage Level and Structure; Wage Differentials
- J42 Monopsony; Segmented Labor Markets
- L13 Oligopoly and Other Imperfect Markets
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration