This paper investigates the degree of monoposony power of German employers in different industries, using a semi-structural approach based on a dynamic model of monopsonistic competition. The empirical analysis is based on a linked employer-employee data set which allows us to control for...

A firm that faces insufficient supply of labor can either increase the wage offer to attract more applicants, or reduce the hiring standard to enlarge the pool of potential employees, or do both. This simultaneous adjustment of wages and hiring standards has been emphasized in a classical...