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

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 …

degree of monopsony power is captured by the elasticity of firm-level labor supply, with a lower elasticity implying more … wage-setting power by the firm. With more productive firms paying higher wages, monopsony power dampens the impact of firm … inequality, but in an open economy high levels of monopsony power inhibit exporting, which may reduce inequality by compressing …

Does competition in the labor market affect wage inequality? Standard textbook monopsony models predict that lower … the past 20 years. Using a theory-based relationship, we then leverage variation across sectors and over time to show that …

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 …

Many workers provide services for customers via digital platforms that may exert monopsony power. Typical expositions … with these issues. Platforms exploit monopsony power to markup their commission rate and reduce equilibrium wages. A worker …