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Common Ownership In Labor Markets, José Azar, Yue Qiu, Aaron Sojourner
Common Ownership In Labor Markets, José Azar, Yue Qiu, Aaron Sojourner
Upjohn Institute Working Papers
In this paper, we study common ownership in U.S. labor markets, and document that common ownership more than doubled over the period 1999–2017. To identify the causal effects of common ownership on labor market outcomes, we use a firm’s addition to the S&P 500 index as a shock to the common ownership of its competitors in local labor markets. Using a matched difference-in-differences analysis, we find that, after a firm enters the S&P 500 index, the average annual earnings per employee of its local competitors decrease relative to the counterfactual. The effect of S&P 500 index additions on employee earnings …