Monopsony in Labor Markets: Theory, Evidence, and Public Policy

Monopsony power in labor markets leads to lower wages, reduced employment, and increased prices for consumers. Antitrust policy options include collusion on compensation, no-poaching agreements, and non-compete agreements. Labor unions and the antitrust exemption can influence monopsony, and mergers can exacerbate it. This book provides a thorough explanation of antitrust policy and remedies.

Format: Paperback / softback
Length: 212 pages
Publication date: 15 February 2024
Publisher: Cambridge University Press

The economics of monopsony power manifest in reduced wages, other forms of compensation, and decreased employment opportunities. This phenomenon leads to the transfer of wealth from workers to their employers, while also resulting in a decrease in the employer's output, leading to higher consumer prices. Monopsony in Labor Markets underscores the pervasive nature of monopsony and delves into the available antitrust policy options. It provides a comprehensive economic and empirical foundation for antitrust concerns, outlining the relevant antitrust policy framework. Building upon this foundation, the book examines collusion on compensation, collusive no-poaching agreements, and the inclusion of non-compete agreements in employment contracts. It also explores the influence of labor unions, labor's antitrust exemption, which permits the exercise of countervailing power, and the consequences of mergers to monopsony. This book offers a thorough explanation of antitrust policy, identifying the fundamental economic problems associated with monopsony in labor markets and exploring the remedies currently available.

The economics of monopsony power result in lower wages, other forms of compensation, and reduced employment opportunities. This phenomenon leads to the transfer of wealth from workers to their employers, while also resulting in a decrease in the employer's output, leading to higher consumer prices. Monopsony in Labor Markets underscores the pervasive nature of monopsony and delves into the available antitrust policy options. It provides a comprehensive economic and empirical foundation for antitrust concerns, outlining the relevant antitrust policy framework. Building upon this foundation, the book examines collusion on compensation, collusive no-poaching agreements, and the inclusion of non-compete agreements in employment contracts. It also explores the influence of labor unions, labor's antitrust exemption, which permits the exercise of countervailing power, and the consequences of mergers to monopsony. This book offers a thorough explanation of antitrust policy, identifying the fundamental economic problems associated with monopsony in labor markets and exploring the remedies currently available.

Weight: 316g
Dimension: 151 x 229 x 14 (mm)
ISBN-13: 9781009465250