degree of monopsony power is captured by the elasticity of firm-level labor supply, with a lower elasticity implying more … wage-setting power by the firm. With more productive firms paying higher wages, monopsony power dampens the impact of firm … inequality, but in an open economy high levels of monopsony power inhibit exporting, which may reduce inequality by compressing …

industry. Using firm level data from China, we document that wholesalers play no such role for direct importers. However, other …