Mertens, Matthias - 2021 - This draft: May 18, 2021
I study how labour market power affects firm wage differences using German manufacturing sector firm-level data (1995 …-2016). In past decades, labour market power increasingly moderated rising between-firm wage inequality. This is becausehigh …-paying firms possess high and increasing labour market power and pay wages below competitive levels, whereas low-wage firms pay …