Comment on Markdowns and Labor Market Power for DOJ/FTC Request for Information on Draft Merger Guidelines

Abstract

We explain how the production approach to estimating labor markdowns can serve the DOJ and FTC in merger enforcement under Guideline 11 of the Draft Merger Guidelines (July 19, 2023). Guideline 11 aims to determine whether a merger between competing employers lessens competition for labor, resulting in lower wages and other harms to workers.

Arshia Hashemi
Arshia Hashemi
Economic Consultant