Overview

1. 1 Wage Setting vs. Wage Taking Inhisground-breakingmonographMonopsonyin Motion:Imperfect Competitionin Labor Markets, Manning (2003a, p. 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? 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. ' 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 some of the workers stay with the rm, giving the rm some discretionin wage setting. Technically speaking, the main difference between the two models is that under perfect competition the laboursupply faced by the rm is in nitely elastic, whereas this doesnot hold under 1 monopsony. While Manningis right in stating that the modelof a perfectlycompetitivelabour market still dominates teaching and considerable parts of labour economics, there are of course notable exceptions, for instance, the ef ciency wage (e. g. , Schlicht, 1978; Salop, 1979a; Shapiro and Stiglitz, 1984; Yellen, 1984), the search and eq- librium unemployment (e. g.

Full Product Details

Author:   Boris Hirsch
Publisher:   Springer-Verlag Berlin and Heidelberg GmbH & Co. KG
Imprint:   Springer-Verlag Berlin and Heidelberg GmbH & Co. K
Edition:   2010 ed.
Volume:   639
Dimensions:   Width: 15.50cm , Height: 1.50cm , Length: 23.50cm
Weight:   0.890kg
ISBN:  

9783642104084

ISBN 10:   3642104088
Pages:   280
Publication Date:   26 February 2010
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Paperback
Publisher's Status:   Active
Availability:   In Print  
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Table of Contents

Spatial Monopsony.- Simple Static Monopsony.- Short-Run Spatial Monopsony.- Long-Run Spatial Monopsony.- Spatial Monopsony and the Gender Pay Gap.- Spatial Monopsony and Regional Differences in the Gender Pay Gap.- Dynamic Monopsony.- Simple Dynamic Monopsony.- A General Equilibrium Model of Dynamic Monopsony.- Dynamic Monopsony and the Gender Pay Gap.- Concluding Remarks.

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