Modern Models of Monopsony in Labor Markets: A Brief Survey

15 Pages Posted: 3 May 2010

See all articles by Orley Ashenfelter

Orley Ashenfelter

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Henry S. Farber

Princeton University; National Bureau of Economic Research (NBER)

Michael R. Ransom

Brigham Young University - Department of Economics; IZA Institute of Labor Economics

Abstract

This brief survey contains a review of several new empirical papers that attempt to measure the extent of monopsony in labor markets. As noted originally by Joan Robinson, monopsonistic exploitation represents the gap between the value of a worker's marginal product and the worker's wage, and it represents both a distortion in the allocation of resources and an income transfer away from workers. The evidence surveyed from a fairly broad range of labor markets suggests that monopsony may be far more pervasive than is sometimes suggested.

Keywords: monopsony, imperfect labor markets

JEL Classification: J31

Suggested Citation

Ashenfelter, Orley C. and Farber, Henry S. and Ransom, Michael R., Modern Models of Monopsony in Labor Markets: A Brief Survey. IZA Discussion Paper No. 4915. Available at SSRN: https://ssrn.com/abstract=1599013

Orley C. Ashenfelter (Contact Author)

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
United States
609-258-4040 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Henry S. Farber

Princeton University ( email )

Industrial Relations Section
Firestone Library
Princeton, NJ 08544
United States
609-258-4044 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Michael R. Ransom

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States
801-422-4736 (Phone)
801-422-0194 (Fax)

HOME PAGE: http://fhss.byu.edu/econ/ransom/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
314
Abstract Views
1,536
rank
103,096
PlumX Metrics