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Monopsony Power in Occupational Labor Markets

Author

Listed:
  • Fabio Méndez

    (Loyola University Maryland)

  • Facundo Sepúlveda

    (Universidad de Santiago de Chile)

Abstract

We collect data from the 1979 National Longitudinal Survey of Youth and create comparable measures of monopsonistic power for up to 46 occupational labor markets in the USA, starting in 1979 and ending in 2000. Our results suggest most occupational labor markets during that period were characterized by substantial amounts of monopsonistic, wage-setting power. Furthermore, after controlling for individual, time, and industry fixed effects, our results show a negative and significant correlation between the extent of monopsony power that characterizes a market and both, the wages and fringe benefits received by workers.

Suggested Citation

  • Fabio Méndez & Facundo Sepúlveda, 2019. "Monopsony Power in Occupational Labor Markets," Journal of Labor Research, Springer, vol. 40(4), pages 387-411, December.
    • Handle: RePEc:spr:jlabre:v:40:y:2019:i:4:d:10.1007_s12122-019-09289-w
    DOI: 10.1007/s12122-019-09289-w
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    References listed on IDEAS

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    Cited by:

    1. Darius Daniel Martin, 2021. "The Minimum Wage in a Roy Model with Monopsony," Journal of Labor Research, Springer, vol. 42(3), pages 358-381, December.

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    More about this item

    Keywords

    Monopsony; Wages; Fringe benefits;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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