Oligopsony and the Distribution of Wages

V Bhaskar and Ted To

No CIRJE-F-42, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: We present a simple model which is consistent with the evidence on wage dispersion, including persistent inter- and intra-industry wage differentials, and the effects of minimum wages on this distribution. Our model assumes that workers are equally able but have heterogeneous preferences for non-wage characteristics, while employers have heterogeneous productivity characteristics. This results in a model of labor market oligopsony where "inside" and "outside" forces interact in wage determination, with results which are consistent with the empirical evidence.

New Economics Papers: this item is included in nep-lab and nep-mic
Date: 1999-03
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Related works:
Working Paper: Oligopsony and the Distribution of Wages (1999)
Journal Article: Oligopsony and the distribution of wages (2003)
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