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The Bias Against Low-Wage Labor Markets in Merger Analysis

BY | January 23, 2020

Why are labor harms so rarely pled in antitrust cases? One factor may be the bias against low-wage labor markets in merger analysis. This bias treats the exact same employee…

Why are labor harms so rarely pled in antitrust cases? One factor may be the bias against low-wage labor markets in merger analysis. This bias treats the exact same employee behavior as rational in high-wage markets and irrational in low-wage markets. This article concludes with recommendations on how to better account for labor effects more generally in antitrust.

Anant Raut1

I. INTRODUCTION

Blistering critiques of the last five decades of antitrust

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