Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Antitrust Enforcement in Labor Markets
Journal of Economic Perspectives
(pp. 115–38)
(Complimentary)
Abstract
Until recently, antitrust laws were rarely enforced in labor markets. Although the existence of labor market power has long been recognized, evidence only recently emerged that such market power regularly arises from sources that are actionable under antitrust law. Since 2010, antitrust agencies have substantially increased labor market enforcement actions. However, many questions relevant to enforcement remain unanswered, such as how to conduct market definition for labor markets and how best to incorporate concentration into models of the labor market. This article reviews how antitrust is beginning to be used in labor markets, the evidence for and against its use, and the remaining evidence gaps standing in the way of more effective use.Citation
Prager, Elena. 2026. "Antitrust Enforcement in Labor Markets." Journal of Economic Perspectives 40 (1): 115–38. DOI: 10.1257/jep.20241446Additional Materials
JEL Classification
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- G38 Corporate Finance and Governance: Government Policy and Regulation
- J41 Labor Contracts
- J42 Monopsony; Segmented Labor Markets
- K21 Antitrust Law
- L40 Antitrust Issues and Policies: General