A cross-country descriptive analysis Authors / Clemente Pignatti, Sévane Ananian © International Labour Organization 2026 Attribution 4.0 International (CC BY 4.0) This work is licensed under the Creative Commons Attribution 4.0 International. See:https://creativecommons.org/licenses/by/4.0/. The user is allowed to reuse, share (copy and redistrib-ute), adapt (remix, transform and build upon the original work) as detailed in the licence. Theuser must clearly credit the ILO as the source of the material and indicate if changes were made Attribution– The user must indicate if changes were made and must cite the work as follows:Pignatti, C., Ananian, S.Labour market concentration and wage inequality:: A cross-country descrip- Translations– In case of a translation of this work, the following disclaimer must be added along with the attribution:This is a translation of a copyrighted work of the International LabourOrganization (ILO). This translation has not been prepared, reviewed or endorsed by the ILO and shouldnot be considered an official ILO translation. The ILO disclaims all responsibility for its content and ac- Adaptations– In case of an adaptation of this work, the following disclaimer must be addedalong with the attribution:This is an adaptation of a copyrighted work of the International LabourOrganization (ILO). This adaptation has not been prepared, reviewed or endorsed by the ILO and should Third-party materials– This Creative Commons licence does not apply to non-ILO copyright ma-terials included in this publication. If the material is attributed to a third party, the user of such Any dispute arising under this licence that cannot be settled amicably shall be referred to arbitra-tion in accordance with the Arbitration Rules of the United Nations Commission on International For details on rights and licensing, contact:rights@ilo.org. For details on ILO publications anddigital products, visit:www.ilo.org/publns. ISBN 9789220432778 (print), ISBN 9789220432785 (web PDF), ISBN 9789220432792 (epub), ISBN9789220432808 (html). ISSN 2708-3438 (print), ISSN 2708-3446 (digital) https://doi.org/10.54394/00033457 The designations employed in ILO publications, which are in conformity with United Nationspractice, and the presentation of material therein do not imply the expression of any opinion or of its authorities, or concerning the delimitation of its frontiers or boundaries. See:www.ilo.org/disclaimer. The opinions and views expressed in this publication are those of the author(s) and do not nec-essarily reflect the opinions, views or policies of the ILO. Reference to names of firms and commercial products and processes does not imply their en-dorsement by the ILO, and any failure to mention a particular firm, commercial product or pro- Information on ILO publications and digital products can be found at:www.ilo.org/research-and-publications ILO Working Papers summarize the results of ILO research in progress, and seek to stimulatediscussion of a range of issues related to the world of work. Comments on this ILO Working Paper Authorization for publication: Caroline Fredrickson, Director, Research Department ILO Working Papers can be found at:www.ilo.org/research-and-publications/working-papers Suggested citation:Pignatti, C., Ananian, S. 2026.Labour market concentration and wage inequality:: A cross-country descriptive analysis, ILO Working Paper 167 (Geneva, ILO).https://doi.org/10.54394/00033457 Abstract This paper examines the relationship between labour market concentration and wage inequalityusing global survey data for the period 2006–2022. The results show that higher labour marketconcentration is associated with higher wage inequality, especially in the top half of the wagedistribution. However, labour market institutions such as trade unions, collective bargaining Keywords:Enterprises; Mergers; Remuneration; Inequality; Developing countries; Collective bar-gaining; Minimum wage. About the authors Clemente Pignattiis Assistant Professor of Economics at the University of Milan. Previously,he worked at Bocconi University and in the Research Department of the International LabourOrganization. His research focuses on how labour market policies, social protection schemes and Sévane Ananianis an economist in the Research Department of the International LabourOrganization (ILO), where he has worked since September 2021. His work focuses on wages Table of contents List of Tables Table 1: Descriptive statistics of the HHITable 2: Descriptive statistics on measures of wage inequalityTable 3: List of countries and years included in the baseline specificationTable 4: Baseline results of the effects of labour market concentration on wage inequalityTable 5: Baseline results at the country level using also imputed values of HHITable 6: The mediating role of trade union membership XIntroduction In its simplest definition, a labour market is considered concentrated when few firms ha