Dynamic Wage Setting: The Role of Monopsony Power and Employment Costs
We decompose wage markdowns into a static monopsony wedge and a dynamic cost wedge, finding that nearly all cross-sectional dispersion in markdowns arises from employment costs, not market power.
Aug 25, 2026
Monopsony Power and the Transmission of Monetary Policy
We show that firms with high monopsony power respond less to monetary policy and that the decline in labor market power since the 1980s has amplified the output effects of monetary policy.
Jun 5, 2026