Monopsonistic Labour Markets and the Gender Pay Gap Boris HirschPaperback
Monopsonistic Labour Markets and the Gender Pay Gap Boris HirschPaperback 1. Wage Taking Inhisground-breakingmonographMonopsonyin Motion: Imperfect Competitionin Labor Markets, Manning (2003a, p. 1…
Specifikacia Monopsonistic Labour Markets and the Gender Pay Gap Boris HirschPaperback
Monopsonistic Labour Markets and the Gender Pay Gap Boris HirschPaperback
1. Wage Taking Inhisground-breakingmonographMonopsonyin Motion: Imperfect Competitionin Labor Markets, Manning (2003a, p. 1 Wage Setting vs.
Much of labor economics is built on the assumption that all existing workers immediately leave the rm as that is the implication of the assumption of perfect competition in the labor market. 3) starts his argument in favour of a monop- nistic approach to labour market phenomena with a compelling case against perfect competition: 'What happens if an employer cuts the wage it pays its workers by one cent? ' Taking the model literally, this would indeed be its prediction.
Other than in a perfectly competitive labour market where employers are wage takers unable to deviate from the market wage, a monopsonistic approach assumes that employers possess signi cant wage-setting power and actually ex- cise their market power. Put differently, it argues that