Labour market oligopsonistic competition: The effect of worker immobility on wages
AbstractWe suggest that firms in a local labour market may be able to exploit worker mobility costs and offer immobile workers wages that are lower than their marginal product. If so, the ability of employers to exploit worker immobility in setting wages would decline in the competitiveness of the local labour market. We test this intuition using a measure of individual mobility costs and measures of local labour market competition. Our findings suggest that worker immobility causes substantial wage variation across workers in small, weakly competitive markets, and in occupations where wages are individually bargained.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 17 (2010)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/labeco
Wages Local labour markets Oligopsonistic competition Geographic mobility Mobility costs;
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