Concentration of employers confers monopsony power because workers lack the job opportunities that would ensure pay would track their productivity. Monopsony power is when employers have power to set wages unilaterally, and workers generally earn less than they are worth. That is significant, because concentration of employers is one of the reasons we expect that labor markets are monopsonized as a matter of course. labor markets where both Sprint and T-Mobile are active. Our analysis begins with existing research on how much the merger would increase labor market concentration in the U.S. stores that sell the wireless services of the merging firms and their competitors. In this paper, we draw upon a nascent but fast-growing empirical economics literature on the earnings effect of labor market concentration to estimate how the Sprint–T-Mobile merger would affect earnings of workers at the U.S. One aspect of the merger that has received little attention is its impact on competition in the local labor markets for retail wireless workers. Federal and state antitrust enforcers are currently reviewing the proposed merger of Sprint and T-Mobile, which would cut the number of national players in the U.S.
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