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Wage-Productivity Margins and Market Structure

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  • Stewart, Geoff
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    Abstract

    The main aim of this paper is to suggest a model which relates wage rates to the degree monopsony power in the labour market. Labour market monopsony power has received relatively little theoretical or empirical attention, yet there are a number of reasons for believing it may be a fairly general phenomenon. Firstly, imperfect worker information on the existence and characteristics of alternative jobs will tend to impart a positive slope to the supply curve of labour facing a firm. Secondly, there are many social and institutional barriers to geographical mobility. Finally, the literature on segmented labour markets emphasises the barriers to mobility between jobs even within a region.

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    Bibliographic Info

    Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 225.

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    Length: 12 pages
    Date of creation: 1982
    Date of revision:
    Handle: RePEc:wrk:warwec:225

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