Policy complementarities to curb market power and raise real wages

Marcel Steffen Eckardt and Michael Neugart

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: Recent evidence suggests that anti-competitive behavior of firms negatively affects workers’ real wages. Typically, policy actions relate to antitrust regulation and rarely to measures that curb employers’ monopsony power. We show that policymakers who want to raise workers’ real wages should address both types of market power simultaneously to gain from a policy complementarity.

Date: 2022
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Published in Economics Letters (2022) : pp. 110336

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Journal Article: Policy complementarities to curb market power and raise real wages (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:131211

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