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From Monopoly to Monopsony Capitalism

Author

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  • Dev Nathan

    (Institute for Human Development
    GenDev Centre for Research and Innovation
    Centurion University of Technology and Management)

Abstract

This paper argues for the characterization of contemporary capitalism as monopsony capitalism and, specifically, as global monopsony capitalism. This means that the degrees of buyer power should be added to the usual demand–supply analysis of markets for labour power and other inputs. Monopsony is used to understand the nature of global value chains, within which the paper distinguishes high, medium and low levels of monopsony power and outlines the main features of labour conditions in these different levels of monopsony power. The paper also sees how the working of monopsony power is gendered. The concluding section points to the difficult task of forming countervailing power in the age of global monopsony capitalism.

Suggested Citation

  • Dev Nathan, 2021. "From Monopoly to Monopsony Capitalism," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 843-866, December.
    • Handle: RePEc:spr:ijlaec:v:64:y:2021:i:4:d:10.1007_s41027-021-00350-w
    DOI: 10.1007/s41027-021-00350-w
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    References listed on IDEAS

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    1. Cédric Durand & Wiliiam Milberg, 2020. "Intellectual monopoly in global value chains," Review of International Political Economy, Taylor & Francis Journals, vol. 27(2), pages 404-429, March.
    2. Brooks, Wyatt J. & Kaboski, Joseph P. & Li, Yao Amber & Qian, Wei, 2021. "Exploitation of labor? Classical monopsony power and labor's share," Journal of Development Economics, Elsevier, vol. 150(C).
    3. Nathan,Dev & Tewari,Meenu & Sarkar,Sandip (ed.), 2016. "Labour in Global Value Chains in Asia," Cambridge Books, Cambridge University Press, number 9781107103740, Enero-Abr.
    4. Robert J. Thornton, 2004. "Retrospectives: How Joan Robinson and B. L. Hallward Named Monopsony," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 257-261, Spring.
    5. José Azar & Emiliano Huet & Ioana Marinescu & Bledi Taska & Till von, 2024. "Minimum Wage Employment Effects and Labour Market Concentration," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(4), pages 1843-1883.
    6. Ugo Pagano, 2014. "The crisis of intellectual monopoly capitalism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(6), pages 1409-1429.
    7. Stephanie Barrientos, 2014. "Gendered Global Production Networks: Analysis of Cocoa-Chocolate Sourcing," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 791-803, May.
    8. Janina Grabs & Stefano Ponte, 2019. "The evolution of power in the global coffee value chain and production network," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 803-828.
    9. Barrientos,Stephanie, 2019. "Gender and Work in Global Value Chains," Cambridge Books, Cambridge University Press, number 9781108492317, Enero-Abr.
    10. Gale Raj-Reichert, 2020. "The powers of a social auditor in a global production network: the case of Verité and the exposure of forced labour in the electronics industry [Corporate social responsibility and freedom of assoc," Journal of Economic Geography, Oxford University Press, vol. 20(3), pages 653-678.
    11. Raj-Reichert, Gale, 2020. "The powers of a social auditor in a global production network: the case of Verité and the exposure of forced labour in the electronics industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(3), pages 653-678.
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    Cited by:

    1. Dev Nathan & S. Rahul & Lakshmi Bhatia & Rekha Chakravarthi & Pradeepan Ravi, 2024. "Global Monopsony, Contracting Practices and Labour Outcomes: A Study of Garment GVCs in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(4), pages 993-1014, December.
    2. Szymczak, Sabina, 2024. "The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-9.
    3. Sabina Szymczak, 2023. "Systematic literature review: theory on GVCs' impact on wages, employment, and productivity," GUT FME Working Paper Series A 71, Faculty of Management and Economics, Gdansk University of Technology.
    4. Sabina Szymczak, 2024. "The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-25, December.

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