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| Thomas P Krumel jr |
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| ''Labor market tightness and persistent retail–farm price spreads in U.S. meatpacking'' |
| ( 2026, Vol. 0 No.0 ) |
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| Episodes of elevated prices in concentrated industries are often interpreted as evidence of market power. However, price spikes can also reflect input cost shocks, particularly in labor-intensive sectors. This paper revisits the COVID-19 period in U.S. meatpacking to examine whether sustained labor market disruptions help explain the persistent widening of retail–farm price spreads in 2021. Using descriptive evidence on industry concentration, retail–farm price spreads, online job postings, and advertised wages, the analysis emphasizes sequencing rather than causal identification. Industry concentration remained stable, while hiring intensity and posted wages increased prior to or alongside the sustained elevation of retail–farm price spreads. The timing is consistent with a cost-based labor mechanism operating within a structurally unchanged but concentrated industry. The findings caution against inferring anticompetitive behavior from price spikes alone and highlight the role of labor market conditions in shaping price dynamics in concentrated industries. |
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| Keywords: COVID-19, labor market tightness, market structure, meatpacking, price spreads |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
J3 - Wages, Compensation, and Labor Costs: General |
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| Manuscript Received : Oct 11 2026 | | Manuscript Accepted : Oct 11 2026 |
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