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| Topic | New study suggests the cause of wage stagnation is corporate monopsony |
| Darkman124 01/16/18 11:32:22 PM #1: | http://www.nber.org/papers/w24147 working paper version available here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3088767 tl;dr: monopsony is the labor equivalent of monopoly on supply of a good; it's a monopoly on jobs, essentially being the only employer in town for a given line of work. examples would include an isolated hospital with no other medical center for a hundred miles. a major driver in wage stagnation is that while there are many jobs available, they're generally all held by the same employer, so there's no competition or poaching of employees, allowing the company to offer lower starting pay and fewer raises, since employees cannot easily change jobs to a higher-paying competitor. the metric used to measure monopsony is the same one used by the dept of to identify when to challenge corporate mergers, and it's about 25% above the mark at which the federal government typically sues to block mergers. --- And when the hourglass has run out, eternity asks you about only one thing: whether you have lived in despair or not. ... Copied to Clipboard! |
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