Labour market deregulation or corporate concentration?

There are several significant developments in OECD countries: Weak corporate investment compared to what it should be (according to Tobin’s q, for example); Return on physical capital and return on corporate equity that have not fallen in line with long-term interest rates; Skewing of income distribution at the expense of employees; Increase in the market value of companies relative to the value of their capital. All these developments can have two explanations: An increase in corporate concentration in goods and services markets, which enables companies to increase their profit margins and encourages them to reduce their investments; Labour market deregulation and a decline in employees’ bargaining power, leading to small wage increases and therefore weak household demand.