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Monopsony in Labor Markets: A Review

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  • Alan Manning

Abstract

Researchers’ interest in monopsony has increased in recent years. This article reviews the accumulating evidence that employers have considerable monopsony power. It summarizes the application of this idea to explaining the impact of minimum wages and immigration, in anti-trust, and in understanding how to model the determinants of earnings in matched employer–employee data sets and the implications for inequality and the labor share.

Suggested Citation

  • Alan Manning, 2021. "Monopsony in Labor Markets: A Review," ILR Review, Cornell University, ILR School, vol. 74(1), pages 3-26, January.
    • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:1:p:3-26
    DOI: 10.1177/0019793920922499
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    More about this item

    Keywords

    monopsony; imperfect competition; labor markets; minimum wages;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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