Monopsony in Labor Markets: A Review. (January 2021)

• Record Type: Journal Article
• Authors: Manning, Alan
• Is Part Of: Industrial and labor relations review. Volume 74:Number 1(2021)
• Page Start: 3
• Page End: 26
• Publication Date: 2021-01
• Subjects: monopsony -- imperfect competition -- labor markets -- minimum wages; Industrial relations -- Periodicals; 331.05
• DOI: 10.1177/0019793920922499
• Languages: English
• ISSNs: 0019-7939

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.