T-Mobile/Sprint Deal Would Hurt Retail Worker Wages

December 18, 2018

The merger of T-Mobile and Sprint would lead lead to declines in wireless retail store workers of 1%-3% in most markets and up to 7% in the most affected. That is the prediction of a new paper from the Economic Policy Institute and Roosevelt Research Institute.

The paper argues that the government and courts need to take wages and working conditions into account when looking at mergers.

“Historically, antitrust enforcers have only considered the impact of potential mergers on consumers and product markets,” said Roosevelt Institute Research Director Marshall Steinbaum, the paper's co-author. “But increased market power also jeopardizes workers’ wages and labor markets. Regulators must take this into account as a matter of routine when reviewing mergers.”

In the 50 "most affected" markets, the earnings hit could be as much as $3276 per year.  The paper is extrapolated from studies the institute says have shown that concentration in labor markets has a negative impact on wages, and applies that to the retail workers who sell wireless equipment and services.

Read more at Broadcasting and Cable

^