Industry Consolidation Could Be Holding Back Wage Growth

This article at Slate¬†brings up an interesting hypothesis for restrained growth in wages in recent years. When companies merge, the regulatory bodies focus on the impact the merger would have on prices consumers pay for its products. However, equal focus should be placed on the impact a more consolidated market will have on employers’ power to negotiate lower increases in employee wages.

This can have an pronounced impact in smaller local/regional areas where there may be limited choice among employers for a person in a given trade.