Fernández-Villaverde, Jesús; Mandelman, Federico S.; … - National Bureau of Economic Research - 2021
. Reductions in search costs increase market concentration, lower the labor income share, and increase wage inequality … the formation of vendor contracts. Search complementarities amplify small differences in productivity among firms. Market … concentration fosters monopsony power in the labor market, magnifying profits and further enhancing high-productivity firms' output …