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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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    Cited by:

    1. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Maciej Albinowski & Piotr Lewandowski, 2022. "The heterogeneous regional effects of minimum wages in Poland," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 237-267, April.
    3. Orley Ashenfelter & David Card & Henry Farber & Michael R. Ransom, 2022. "Monopsony in the Labor Market: New Empirical Results and New Public Policies," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 1-10.
    4. Matthias Fahn & Takeshi Murooka, 2021. "Informal Incentives, Labor Supply, and the Effect of Immigration on Wages," Economics working papers 2021-12, Department of Economics, Johannes Kepler University Linz, Austria.
    5. E. Mark Curtis & Daniel G. Garrett & Eric C. Ohrn & Kevin A. Roberts & Juan Carlos Suárez Serrato, 2021. "Capital Investment and Labor Demand," NBER Working Papers 29485, National Bureau of Economic Research, Inc.
    6. Gaurab Aryal & Manudeep Bhuller & Fabian Lange, 2019. "Signaling and Employer Learning with Instruments," NBER Working Papers 25885, National Bureau of Economic Research, Inc.
    7. 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).
    8. Hashmat Khan & Konstantinos Metaxoglou, 2021. "The Behavior of the Aggregate U.S. Wage Markdown," Carleton Economic Papers 21-06, Carleton University, Department of Economics.
    9. 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.
    10. Aida Farmand & Owen Davis, 2021. "Who Does the Earned Income Tax Credit Benefit? A Monopsony View," SCEPA working paper series. 2021-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    11. Gibson, Matthew, 2021. "Employer Market Power in Silicon Valley," IZA Discussion Papers 14843, Institute of Labor Economics (IZA).
    12. Orley Ashenfelter & David Card & Henry S. Farber & Michael R. Ransom, 2021. "Monopsony in the Labor Market: New Empirical Results and New Public Policies," Working Papers 294, Princeton University, Department of Economics, Center for Economic Policy Studies..

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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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