Monopsony Power, Pay Structure, and Training

  title={Monopsony Power, Pay Structure, and Training},
  author={Samuel Muehlemann and Paul Ryan and Stefan C. Wolter},
  journal={Industrial \& Labor Relations Review},
  pages={1097 - 1114}
Although interest in monopsonistic influences on labor market outcomes has revived in recent years, only a few empirical studies provide direct evidence on this topic. In this article, the authors analyze the effect of monopsony power on pay structure, using a direct measure of labor market thinness. The authors find evidence of monopsony power, as firms facing fewer local competitors offer lower wages to skilled labor and trainees, but not to unskilled labor. The findings have important… Expand
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