TY  - RPRT
        AU  - Mühlemann, Samuel
AU  - Ryan, Paul
AU  - Wolter, Stefan C.
        TI  - Monopsony Power, Pay Structure and Training
        PY  - 2011/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5587
        UR  - https://www.iza.org/publications/dp5587
        AB  - Although interest in monopsonistic influences on labour market outcomes has revived in recent years, only a few empirical studies provide direct evidence on it. This paper analyses empirically the effect of monopsony power on pay structure, using a direct measure of labour market 'thinness'. We find that having fewer competitors for skilled labour is associated at the level of the establishment with lower pay for both skilled labour and trainees, but not for unskilled labour. These findings have potentially important implications for the economic theory of training, as most recent models assume that skilled pay is set monopsonistically but both unskilled and trainee pay are determined competitively. Our results support those assumptions for skilled pay and unskilled pay, but not for trainee pay.
        KW  - firm-sponsored training
KW  - wage differentials
KW  - monopsony
        ER  -