Many firms are able to exploit the fact that it is hard for workers to move from one employer to another, keeping wages lower than they would be in a competitive market. As Alan Manning explains, labour markets are becoming less dynamic and one consequence is to increase this `monopsony power? of employers.

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2 November 2020     Paper Number CEPCP592

Download PDF - In brief... Monopsony in labour markets: what it is, why it matters

This CentrePiece article is published under the centre's Labour programme.