In a dynamic labour market, employer market power is jointly determined by the entry and exit margins of labour supply - ie the extent to which higher wages ease recruitment and improve rentention. Ihsaan Bassier, Alan Manning and Barbara Petrongolo focuses on the entry margin, investigating the extent to which higher-wage firms in the UK can fill job vacancies faster, making recruitment easier. The findings reinforce the relevance of monopsonistic labour markets and the associated ability of firms to mark down the wages of workers.

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28 September 2023

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Vox EU

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https://cepr.org/voxeu/columns/wages-and-vacancy-duration

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This publication comes under the following theme: Unemployment and job search