Grant Category

The Labor Market

How does the labor market affect equitable growth? How does inequality in turn affect the labor market?

The labor market is one of the most important institutions determining economic growth and its distribution, as labor income is more than two-thirds of national income. Skill levels and the efficient matching of skills to jobs are key for economic growth. Yet the labor market is not a perfectly competitive market, but rather one that is regulated by a wide array of institutions that affect labor income and its distribution.

We need a better understanding of the two-way link between equitable growth and the labor market. How does the labor market affect equitable growth? How does inequality, in turn, affect the labor market?

  • The effect of the labor market on equitable growth
  • The effects of inequality on the labor market
  • The effects of productivity on the labor market

Explore the Grants We've Awarded

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Walmart Supercenters and Monopsony Power: How a Large, Low-Wage Employer Impacts Local Labor Markets

Grant Year: 2021

Grant Amount: $15,000

Grant Type: doctoral

This project seeks to determine the overall impact of Walmart supercenters on local employment and earnings, and more generally on the competitive structure of affected local labor markets. The research design exploits the fact that Walmart Inc. attempted to place a supercenter in 39 counties but was prevented from doing so as the result of local efforts. These counties are compared to those where a supercenter was opened. Data on employment and earnings is gathered from the Quarterly Census of Employment and Wages, and county-by-year labor force data from the Local Area Unemployment Statistics, both from the U.S. Bureau of Labor Statistics. Preliminary results show that the entry of Walmart supercenters caused significant reductions in aggregate local employment and earnings, with retail employment increasing immediately upon entry before largely reverting to pre-entry levels. This research will help us understand how large employers can exercise monopsony power locally in the market for less-skilled labor and what the consequences are for workers.

Unequal Protections: Regional Disparities in Labor Standards Policies, Enforcement, and Violations

Grant Year: 2021

Grant Amount: $85,000

Grant Type: academic

Fine, Galvin, Round, and Shepherd seek to understand the relationship between region, race, state enforcement capacities, and minimum wage violations in the United States, and what the mechanisms are by which weaker state enforcement capacities might produce a higher incidence of minimum wage violations. This exploratory, theory-building project involves three major empirical components. First, the four researchers will improve upon, merge, and expand separate datasets they previously compiled on subnational labor standards enforcement capacity to create a novel and flexible database of all the enforcement capacities of the 50 states and the District of Columbia. Data and coding rules will be made fully transparent to enable future researchers to use whichever combination of codes best suits their particular research questions. Second, the researchers will use CPS-MORG data to estimate the minimum wage violation rate in every state and region of the United States. Third, they will use exploratory, in-depth comparative case studies to identify and theorize a repertoire of mechanisms linking the legacy of slavery and the post-slavery racialized economy in the South to weak state enforcement capacity and minimum wage violations in order to understand the role of federalism in creating and maintaining Black-White racial disparities.

Experts

Guest Author

John Kwoka

Northeastern University

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Guest Author

Jonathan Fisher

Washington Center for Equitable Growth

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Grantee

Francisco Garrido

Instituto Tecnológico Autónomo de México (ITAM)

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Grantee

Atif Mian

Princeton University

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Guest Author

Salvatore Morelli

University of Oxford

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