Monopsony Power in Labor Markets.

This article explores the concept of monopsony power in labor markets, where employers have the ability to set wages below competitive levels due to limited job options for workers. It challenges the traditional view of perfectly competitive labor markets and discusses factors such as employer concentration, search frictions, and job differentiation that contribute to monopsony power. The article also discusses the measurement of monopsony power and its impact on nonwage amenities provided by employers. The authors conducted experiments with Walmart employees and found that higher wages are associated with a greater value placed on amenities by workers. The article suggests that policies such as antitrust measures, minimum wages, and collective bargaining can help counter employer monopsony power and improve worker welfare. [Extracted from the article]