Posts tagged Antitrust Division
Antitrust and Modern U.S. Labor Markets: An Economics Perspective
August 3, 2022 // Among the most high-profile initiatives of the Federal Trade Commission (FTC) during the Biden Administration has been a focus on using antitrust law to address issues relating to economic inequality, specifically the role that corporate mergers purport to play in undermining labor market competition, and in turn harming workers.[2] Proponents of the FTC’s current approach appeal to academic analysis in support of their argument.[3] We submit that this focus is misguided, and based on flawed assumptions with respect to both the state of the labor market and the purported growth in economic inequality. Rather, we argue, when analyzed correctly, the data regarding workplace flexibility, labor market concentration, and so-called “income inequality” show that, if the FTC continues down this regulatory path, the workers the agency claims to protect will suffer the greatest harm. The application of antitrust law to the labor market is unprecedented and, perhaps more importantly, antithetical to the well-being of workers. For the reasons we explain below, it should be rejected. National Longitudinal Survey, House of Representatives Select Committee on Economic Disparity and Fairness in Growth, Executive Branch,