Monopsony in the UK

Silvana Tenreyro, Will Abel and Gregory Thwaites

No 13265, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the evolution and effects of monopsony power in the UK private sector labour market from 1998 to 2017. Using linked employee-fi rm micro-data, we find that: (1) Measures of monopsony have been relatively stable across the time period examined - rising prior to the crisis, before subsequently falling again. (2) There is substantial cross-sectional variation in monopsony at the industry level. (3) Higher levels of labour market concentration are associated with lower pay amongst workers not covered by a collective bargaining agreement. (4) For workers covered by a collective bargaining agreement, the association between labour market concentration and pay is greatly reduced and in most cases disappears. (5) The link between productivity and wage levels is weaker when labour markets are more concentrated.

Keywords: Monopsony; Labour markets; market power; Unionization (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-com, nep-eec and nep-hme
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Citations: View citations in EconPapers (8)

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Working Paper: Monopsony in the UK (2018)
Working Paper: Monopsony in the UK (2018)
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