There has been increasing interest in recent years in monopsony in labour market. This paper discusses how we can measure monopsony power combining insights from models based on both frictions and idiosyncrasies. It presents some evidence from the UK and the US about how monopsony power varies across the wage distribution within markets, over the business cycle and over time.

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30 June 2021     Paper Number CEPDP1780

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This CEP discussion paper is published under the centre's Community Wellbeing programme.