Who Set Your Wage?
AbstractI 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.
CitationCard, David. 2022. "Who Set Your Wage?" American Economic Review, 112 (4): 1075-90. DOI: 10.1257/aer.112.4.1075
- 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