Very interesting new research on minimum wage changes and their impact on employment. That impact varies in effect in different labor markets, with the most positive overall effects in very dense markets. The study helps explain why previous studies keep coming up with noisy results.
Helpful definition: MONOPSONY: a market situation in which there is only one buyer. Most examples of monopsony have to do with the purchase of workers' time in the labor market, where a firm is the sole purchaser of a certain kind of labor. ... The classic example of a monopsony is a company coal town, where the coal company acts the sole employer and therefore the sole purchaser of labor in the town.
Brad DeLong: The best thing I have yet seen on how industrial organization, concentration, and monopsony drive the conclusion that i... [feedly]The best thing I have yet seen on how industrial organization, concentration, and monopsony drive the conclusion that i...
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