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Oligopsony and Monopsonistic Competition in Labor Markets

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  • Alan Manning
  • Ted To

Abstract

We argue that models of oligopsony or monopsonistic competition provide insights and explanation for many empirical phenomena in labor markets. Using a simple model with job differentiation and preference heterogeneity, we illustrate how such models can be employed to explain the existence of wage dispersion, the persistence of labor market discrimination, market failures in the provision of training and the anomalous employment effects of minimum wages.

Suggested Citation

  • Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
  • Handle: RePEc:aea:jecper:v:16:y:2002:i:2:p:155-174
    Note: DOI: 10.1257/0895330027300
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