Van Reenen, John 
ORCID: 0000-0001-9153-2907
(2024)
Labor market power, product market power and the wage structure: a note.
Econometrica.
ISSN 0012-9682
(In Press)
Abstract
A burgeoning literature in labor economics is focused on modelling employer labor market power, generally finding nontrivial estimates of monopsony power. A smaller literature also simultaneously incorporates product market power. Deb et al. (2023) is an example of applying an oligopoly-oligopsony model to the US labor market, arguing for important effects on wage levels and inequality from rising market power. I support combining IO and labor as a fruitful way of studying wages and business dynamism but argue for looking more broadly at (i) differential degrees of employer power in labor and product markets; (ii) investigating the dynamic sources of markups (e.g. through innovation) and (iii) considering wage bargaining models, not just wage posting models, which have some starkly different implications for wage setting.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2024 Econometrica |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 28 Feb 2024 10:51 |
| Last Modified: | 14 Oct 2024 10:48 |
| URI: | http://eprints.lse.ac.uk/id/eprint/122117 |
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