2021/03/09 by Ronald Bachmann, Gökay Demir, Hanna Frings · 1 citation
Economics, Econometrics and Finance · Engineering · #Labor market dynamics and wage inequality #ICT Impact and Policies #German Economic Analysis & Policies
paper · pdf · doi:10.3368/jhr.monopsony.0219-10011r1
Using a semistructural approach based on a dynamic monopsony model, we examine to what extent workers performing different job tasks are exposed to different degrees of monopsony power and whether these differences in monopsony power have changed over the last 30 years. We find that workers performing mostly nonroutine cognitive tasks are exposed to a higher degree of monopsony power than workers performing routine or nonroutine manual tasks. Job-specific human capital and nonpecuniary job characteristics are the most likely explanations for this result. We find no evidence that labor market polarization has increased monopsony power over time.