Mertens, Matthias - 2021 - This draft: May 18, 2021
-2016). In past decades, labour market power increasingly moderated rising between-firm wage inequality. This is becausehigh …-paying firms possess high and increasing labour market power and pay wages below competitive levels, whereas low-wage firms pay … competitive wages. Over time, large, high-wage, high-productivity firms generate increasingly large labour market rents while …