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
Heterogeneous Passthrough from TFP to Wages
We estimate how firms' productivity shocks pass through to hourly wages, finding an average passthrough of 0.08 that is twice as large for negative shocks, consistent with labor market power.
Feb 3, 2026