How important is the exercise of classical monopsony power against labor for the level of wages and labor's share? We examine this in the context of China and India – two large, rapidly-growing developing economies. Using theory, we develop a novel screen to quantify how wages are affected by...

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...

How important is the exercise of classical monopsony power against labor for the level of wages and labor's share? We examine this in the context of China and India - two large, rapidly-growing developing economies. Using theory, we develop a novel screen to quantify how wages are affected by...