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FRIHUMSAM-Fri prosj.st. hum og sam

Firm power, worker power, and the structure of labor markets

Alternative title: Bedriftsmakt, arbeidermakt, og strukturen på arbeidsmarkedene

Awarded: NOK 8.0 mill.

Project Number:

334912

Project Period:

2023 - 2027

Subject Fields:

The power dynamics of the employment relationship are shifting. On the one hand, employers are growing larger and occupy increasing shares of labor markets. On the other hand, employees are organizing labor to a much smaller extent and unions are covering different types of workers. These changes are affecting current workers through changes in job opportunities and risks, future generations through changes in returns to human capital investments, and society through their impact on economic efficiency, equity, and the trade-off between the two. This project aims to provide an inclusive understanding of how the employer-employee dynamics in labor markets affect current workers, future generations, and the societal goals of economic efficiency and equality. How do we measure labor market power and how does it impact workers? How do firms respond to changes in labor market power and what does that imply for the future world of work? Can unions balance the asymmetric power in labor markets induced by employer power? How does the balance of power between employers and employees affect investments in human capital and occupational skills? To address these questions, the project will combine state-of-the-art research methods with unique combinations of natural experiments, population-wide register data, and surveys.

The power dynamics of the employment relationship are shifting. Employers are growing larger and occupy increasing shares of labor markets (e.g., Manning 2021). Employees are organizing labor to a much smaller extent and unions are covering different types of workers (e.g., Dodini et al. 2021). These observed phenomena are reflective of deep structural changes in our economies that are reshaping the very foundation of our labor markets, altering the balance of power between employers and employees in dramatic ways (Card 2022). These changes are affecting current workers through changes in job opportunities and risks, future generations through changes in returns to human capital investments, and society through their impact on economic efficiency, equity, and the trade-off between the two. POWER provides an integral understanding of the power dynamics in labor markets and its effect on current workers, future generations, and the societal goals of economic efficiency and equality. How do we measure labor market power and how does it impact workers? How do firms respond to changes in labor market power and what does that imply for the future world of work? Can unions balance the asymmetric power in labor markets induced by employer power? How does the balance of power between employers and employees affect investments in human capital and occupational skills? POWER combines state-of-the-art research methods with unique combinations of natural experiments, population-wide register data, and surveys. In addition to pushing the frontier of knowledge, the project generates a unique data platform on occupational skills, novel individual-level register datasets that follow individuals across countries, and innovative databases on labor scarcity. These data provide researchers with an expanded toolbox for future work on the topic, allowing us to devise sustainable strategies for smart and inclusive growth.

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Funding scheme:

FRIHUMSAM-Fri prosj.st. hum og sam