top of page

Welcome to my website!

 

I am a PhD student at Universitat Pompeu Fabra (UPF), Barcelona.

 

My research is at the intersection of macroeconomics and labor economics. I study how market power impacts the labor market outcomes of workers, especially their wage levels and the resulting inequality in the economy.

I will be joining Tilburg University as an Assistant Professor in 2024.

Contact : shubhdeep.deb@upf.edu

CV and Google Scholar Profile

Webpage_edited.jpg

Research

Working Papers
 

Human hand stacking coins over black background with hexagonal golden shapes. Concept of a

The US economy has experienced a secular increase in markups, declining entrepreneurship rates and increasing income inequality since the 1980s. To reconcile with these secular trends, I propose a theory of entrepreneurial choice with strategic competition among heterogeneous agents. Agents’ decision to become either an entrepreneur or a worker is directly shaped by their competitors. I quantify the model for the period between 1988 and 2018 and find that technological change in the form of both higher fixed costs and more dispersed technologies, as well as a less competitive market structure can explain these trends. Viewed through the lens of the model, the primary factor underlying these secular changes is the increasing dominance of highly productive entrepreneurs who actively discourage the entry of other productive agents, resulting in fewer entrepreneurs, higher markups and rising income inequality.

Publications

Walras-Bowley Lecture: Market Power and Wage Inequality

S. Deb, J. Eeckhout, A. Patel, L. Warren

Econometrica 92(3), 2024, 603-636
Man opposes red man to group of people on scales. Give a head start. Get an edge advantage

We propose a theory of how market power affects wage inequality. We ask how goods and labor market power jointly determine the level of wages, the Skill Premium, and wage inequality. We then use detailed microdata from the US Census Bureau between 1997 and 2016 to estimate the parameters of labor supply, technology and the market structure. We find that a less competitive market structure lowers the average wage of high-skilled workers by 11.3%, and of low-skilled workers by 12.2%, contributes 8.1% to the rise in the Skill Premium and accounts for 54.8% of the increase in between-establishment wage variance.

What drives Wage Stagnation: Monopsony or Monopoly? 

S Deb, J. Eeckhout, A. Patel, L. Warren

Journal of the European Economic Association, 20 (6), 2022, 2181–2225
Businessman is building an alternative path. Revision of the strategy and process changes.

Wages for the vast majority of workers have stagnated since the 1980s while, productivity has grown. We investigate two coexisting explanations based on rising market power: (1) monopsony, where dominant firms exploit the limited mobility of their own workers to pay lower wages; and (2) monopoly, where dominant firms charge too high prices for what they sell, which lowers production and the demand for labor, and hence equilibrium wages economy-wide. Using establishment data from the US Census Bureau between 1997 and 2016, we find evidence of both monopoly and monopsony, where the former is rising over this period and the latter is stable. Both contribute to the decoupling of productivity and wage growth, with monopoly being the primary determinant: In 2016, monopoly accounts for 75% of wage stagnation, monopsony for 25%.

Co-authors

Jan Eeckhout

  Universitat Pompeu Fabra

Aseem Patel

University of Essex

Larry Warren

U.S Census Bureau

Teaching

Introduction to Macroeconomics 
For Professor Alberto Martin

Evaluation 1 , Evaluation 2

Macroeconomics I
For 
Professors Isaac Baley and Davide Debortoli 
Evaluations

bottom of page