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Abstract:

CEP discussion paper
The measure of monopsony
Monica Langella and Alan Manning
June 2021
Paper No' CEPDP1780:
Full Paper (pdf)

Tags: monopsony; labour market competition

There has been increasing interest in recent years in monopsony in labour market. This paper discusses how we can measure monopsony power combining insights from models based on both frictions and idiosyncrasies. It presents some evidence from the UK and the US about how monopsony power varies across the wage distribution within markets, over the business cycle and over time.