This paper examines strategic complementarity in labor demand among industry-leading firms in U.S. local labor markets . Using online vacancy postings and a shift-share instrumental variable approach, I find that a 10% increase in other firms' vacancy postings reduces a firm's own postings by 5% to 8%. I identify wage adjustments and matching frictions as key channels underlying this complementarity. The findings highlight how strategic interactions among large firms shape labor market dynamics.
No takes yet. Share an insight, caveat, or question.
Andrew Yizhou Liu (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: