In this paper we study whether or not transportation infrastructure disrupts local monopsony power in labor markets using an expansion of the national highway system in India. Using panel data on manufacturing firms, we find that monopsony power in labor markets is reduced among firms near newly...

Using firm-level data and variations in tariff reductions across industries in China, we find that input trade liberalization is associated with lower labor markdowns. Furthermore, these pro-competitive labor market effects are more pronounced for skill-intensive firms. We then derive in a...