Labor Market Concentration and Stayers' Wages : Evidence from France

We investigate the impact of labor market concentration on stayers’ wages, where stayers are defined as individuals who remain employed in the same firm for at least two consecutive years. Using administrative data for France, we show that the elasticity of stayers’ wages to labor market concentration is negative but small (about -0.014) once controlling for firm productivity, product market competition and match-specific heterogeneity. Given the strong wage rigidities characterizing the French labor market, this estimate can be seen as a lower bound of the effect of labor market concentration on stayers’ wages in an international perspective