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  5. Oligopsony and Monopsonistic Competition in Labor Markets

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Oligopsony and Monopsonistic Competition in Labor Markets

  • V. Bhaskar
  • Alan Manning
  • Ted To
Journal of Economic Perspectives
vol. 16, no. 2, Spring 2002
(pp. 155–174)
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Abstract

We argue that models of oligopsony or monopsonistic competition provide insights and explanation for many empirical phenomena in labor markets. Using a simple model with job differentiation and preference heterogeneity, we illustrate how such models can be employed to explain the existence of wage dispersion, the persistence of labor market discrimination, market failures in the provision of training and the anomalous employment effects of minimum wages.

Citation

Bhaskar, V., Alan Manning, and Ted To. 2002. "Oligopsony and Monopsonistic Competition in Labor Markets." Journal of Economic Perspectives, 16 (2): 155–174. DOI: 10.1257/0895330027300

JEL Classification

  • J42 Monopsony; Segmented Labor Markets
  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J64 Unemployment: Models, Duration, Incidence, and Job Search
  • J31 Wage Level and Structure; Wage Differentials
  • J38 Wages, Compensation, and Labor Costs: Public Policy
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