This paper brings together the modern literatures on monopsony power and labor unions by empirically examining the …

Does competition in the labor market affect wage inequality? Standard textbook monopsony models predict that lower …

This paper studies the implications of monopsony power for optimal income taxation and welfare. Firms observe workers …’ abilities while the government does not and monopsony power determines what share of the labor market surplus is translated into … profits. Monopsony power increases the tax incidence that falls on firms. This makes labor income taxes less (more) effective …

This paper studies the implications of monopsony power for optimal income taxation and welfare. Firms observe workers …’ abilities while the government does not and monopsony power determines what share of the labor market surplus is translated into … profits. Monopsony power increases the tax incidence that falls on firms. This makes labor income taxes less (more) effective …

the other hand, we document a decline in monopsony power, as both the heterogeneity and the aggregate level of markdowns …

productivity, and firms with low productivities exit the market. This reduces the monopsony distortion present in autarky, where … other hand gives firms additional scope for exercising their monopsony power by reducing their domestic size, and as a …

concentration fosters monopsony power in the labor market, magnifying profits and further enhancing high-productivity firms’ output … share. Firms want to get bigger and hire more workers, in stark contrast with the classic monopsony model, where a firm aims … to reduce the amount of labor it hires. The combination of search complementarities and monopsony power induces a strong …