Wages and employment are too low in a monopsony. Furthermore, a minimum wage or a subsidy may raise employment up to … benchmark for welfare comparisons. Third, we derive a condition which guarantees that the monopsony distortion is exactly …

Wages and employment are too low in a monopsony. Furthermore, a minimum wage or a subsidy may raise employment up to … for welfare comparisons. Third, we derive a condition which guarantees that the monopsony distortion is exactly balanced …

We analyze optimal taxation in an economy with monopsonistic labor markets. The individuals, whose only decisions are …

This paper investigates the degree of monopsony power of employers in different industries against the background of a …

Economists increasingly refer to monopsony power to reconcile the absence of negativeemployment effects of minimum … comprehensive test of monop-sony theory by using labor market concentration as a proxy for monopsony power. Labormarket …, theresults lend empirical support to the monopsony argument, implying that conventionalminimum wage effects on employment conceal …

Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum … wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a … comprehensive test of monopsony theory by using labor market concentration as a proxy for monopsony power. Labor market …

employment in the United States. Whenever the minimum wage has positive or no effects on employment, they appeal to monopsony … States under concentrated labor markets and low-mobility jobs (two variables that measure monopsony), identify heterogeneous … effects among different scenarios derived from the monopsony model, and provide a plausible explanation of the mixed results …

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 …