• Corpus ID: 244714937

Minimum Wages in Concentrated Labor Markets

@inproceedings{Popp2021MinimumWI,
  title={Minimum Wages in Concentrated Labor Markets},
  author={Martin Popp},
  year={2021}
}
  • 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… 

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