• Corpus ID: 244714937

Minimum Wages in Concentrated Labor Markets

  title={Minimum Wages in Concentrated Labor Markets},
  author={Martin Popp},
  • M. Popp
  • Published 26 November 2021
  • Economics
Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a comprehensive test of monopsony theory by using labor market concentration as a proxy for monopsony power. Labor market concentration turns out substantial in Germany. Absent wage floors, a 10 percent increase in labor market concentration makes firms reduce wages by 0… 

Figures and Tables from this paper

Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages
Labor market frictions can explain the coexistence of good (high-wage) and bad (low-wage) jobs. Yet, little is known on what can disrupt that coexistence to equalize the wages of good and bad jobs