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Applicants for any given job are more or less suited to fill it, and the firm will select the best among them. Increasing the wage offer attracts more applicants and makes it possible to raise the hiring standard and improve the productivity of the staff. Wages that optimize on the trade-off...
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that firm's monopsony power affects negatively the earnings of its workers and firm's total factor productivity is … considerably associated with higher earnings, ceteris paribus. We also find that firms use monopsony power for wage differentiation …
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This paper investigates the degree of monopsony power of employers in different industries against the background of a …
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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 …
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