Summary

The International Labour Organization (ILO) has analyzed the relationship between labour market concentration and wage inequality, drawing on data fr om more than 40 countries for the period 2006–2022. The study focuses on situations wh ere a limited number of large employers control a significant share of employment, thereby restraining wage growth. To assess market competition, the authors use the Herfindahl-Hirschman Index (HHI), while average earnings are measured using publicly available data on the monthly wages of employees. The key finding is that increasing employer concentration exacerbates inequality, particularly at the upper end of the income distribution. Wages of high-paid workers grow faster than those of other groups, while the impact on low-paid workers is almost negligible. The effect is more pronounced in developing countries with a high share of informal employment and weak social protection mechanisms. Improving the legal regulation of working conditions is therefore seen as a key area of social policy for reducing market imbalances.