Manning, Alan 
ORCID: 0000-0002-7884-3580
(2010)
The plant size-place effect: agglomeration and monopsony in labour markets.
Journal of Economic Geography, 10 (5).
pp. 717-744.
ISSN 1468-2702
Abstract
This article shows, using data from both the USA and the UK, that average plant size is larger in denser markets. However, many popular theories of agglomeration-spillovers, cost advantages and improved match quality-predict that establishments should be smaller in cities. The article proposes a theory based on monopsony in labour markets-firms in all labour markets have some market power but that they have less market power in cities-that can explain the stylized fact. It also presents evidence that the labour supply curve to individual firms is more elastic in larger markets, consistent with the monopsony hypothesis.
| Item Type: | Article |
|---|---|
| Official URL: | http://joeg.oxfordjournals.org/content/10/5/717.fu... |
| Additional Information: | © 2010 OUP |
| Divisions: | Centre for Economic Performance Economics |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 22 Sep 2010 13:16 |
| Last Modified: | 11 Sep 2025 07:47 |
| URI: | http://eprints.lse.ac.uk/id/eprint/29406 |
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