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Monopsony in labor markets: a review

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  • Manning, Alan

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

  • Manning, Alan, 2021. "Monopsony in labor markets: a review," LSE Research Online Documents on Economics 103482, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:103482
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    File URL: http://eprints.lse.ac.uk/103482/
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    Cited by:

    1. Gaurab Aryal & Manudeep Bhuller & Fabian Lange, 2019. "Signaling and Employer Learning with Instruments," NBER Working Papers 25885, National Bureau of Economic Research, Inc.
    2. Ziesemer, Thomas, 2021. "Labour-augmenting technical change data for alternative elasticities of substitution, growth, slowdown, and distribution dynamics," MERIT Working Papers 2021-003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Anna Sokolova & Todd Sorensen, 2021. "Monopsony in Labor Markets: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 74(1), pages 27-55, January.

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    More about this item

    Keywords

    monospsony; 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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