Hirsch, Boris; Jahn, Elke J.; Schnabel, Claus - 2013
This paper investigates the behaviour of employers' monopsony power and workers' wages over the business cycle. Using … German administrative linked employer-employee data for the years 1985-2010 and an estimation framework based on duration … unemployment rate. In line with theory, we find that firms possess more monopsony power during economic downturns, which shows to …