Working Paper: NBER ID: w29683
Authors: David Card
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.
Keywords: No keywords provided
JEL Codes: J30; J42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market power (L11) | wage-setting power (J38) |
| monopsony (J42) | wage-setting behavior (J31) |
| elasticity of labor supply to firms (J29) | wage determination (J31) |
| differentiated products (L15) | wage-setting above marginal productivity (J38) |
| search theory (C78) | wage-setting above marginal productivity (J38) |