Who Set Your Wage?
American Economic Review
vol. 112,
no. 4, April 2022
(pp. 1075-90)
Abstract
I discuss the recent literature that has led to new interest in the idea of monopsonistic wage setting. Building on advances in search theory and in models of differentiated products, researchers have used a number of different strategies to identify the elasticity of firm-specific labor supply. A growing consensus is that firms have some wage-setting power, though many questions remain about the sources of that power.Citation
Card, David. 2022. "Who Set Your Wage?" American Economic Review, 112 (4): 1075-90. DOI: 10.1257/aer.112.4.1075JEL Classification
- B21 History of Economic Thought: Microeconomics
- D21 Firm Behavior: Theory
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- J42 Monopsony; Segmented Labor Markets