Data and Code for: Labor Market Power, Self-Employment, and Development

This replication package contains the code and data to replicate all Tables and Figures in the paper "Labor Market Power, Self-Employment, and Development" by Amodio, Medina and Morlacco. Abstract: This paper shows that self-employment shapes labor market power in low-income countries, with implications for industrial development. Using Peruvian data, we find that wage-setting power increases with employer concentration but less so where self-employment is more prevalent. A general equilibrium model shows that in oligopsonistic labor markets, self-employment raises the supply elasticity of wage labor, weakening employer market power. However, by the same mechanism, pro-competitive policies aimed at expanding wage employment and reducing reliance on self-employment may unintentionally strengthen labor market power, undermining their objectives.