I discuss the recent literature that has led to new interest in the idea of monopsonistic wage
setting. Building on advances in search theory and in models of differentiated products …

Labor market tightness following the height of the Covid-19 pandemic led to an unexpected
compression in the US wage distribution that reflects, in part, an increase in labor market …

Standard labor market models assume that workers hold accurate beliefs about the external
wage distribution, and hence their outside options with other employers. We test this …

Over the last couple years, the world has experienced the highest levels of inflation in more
than four decades. This paper provides a framework for analyzing the causes and the …

Many studies use matched employer-employee data to estimate a statistical model of
earnings determination with worker and firm fixed effects. Estimates based on this model …

Inequalities abound in the US economy, and a central driver in recent decades is the
widening gap between the hourly compensation of a typical (median) worker and …

This paper reviews the literature on firm wage differences and the fixed effects methods
typically used to measure these differences. High wage firms tend to be more productive …

This paper shows that self-employment shapes labor market power in low-income countries,
affecting industrial development. Using Peruvian data, we show that wage-setting power …

The primary goal of our paper is to quantify the importance of imperfect competition in the
US construction industry by estimating the size of rents earned by American firms and …

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 …