Concentration of corporate ownership and inequality

Grant description:

This project will look at how the concentration of corporate ownership and mergers and acquisitions affects inequality and workers’ well-being by evaluating the relationship between growing market concentration and the declining labor share of income. The research proposes to distinguish two channels by which greater concentration could matter: reduced product market competition, which would directly increase the profit share of gross domestic product and thereby reduce the labor share, and reduced labor market competition—which would directly reduce the labor share.