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 …

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 …

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

When employers face a trade-off between growing large and paying low wages - that is, when they have monopsony power … smaller. A model with labor market monopsony, product market power, and customer acquisition matching these features of the …

employer-employee data on Danish manufacturing firms, we document a negative elasticity between wages and firm scope, which is … of a similar magnitude but opposite sign as the firm-size wage premium. We rationalize the wage discount using a theory … where workers value the opportunity to switch product lines as an amenity. Multiproduct firms exercise their monopsony power …

the public monopsony. Political support for liberalisation may therefore be limited. …

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

and the offshoring of tasks. At the firm-level, exporting leads to higher wages and employment, while offshoring of … production tasks reduces the wages paid to unskilled workers as well as their domestic employment. At the aggregate level, trade … productivity, and firms with low productivities exit the market. This reduces the monopsony distortion present in autarky, where …