Abstract   01

About the authors 01

Introduction 06

1 Labour Market Monopsony: Why It Matters, How It Is Measured, and What We Know 08

 1.1 The Renewed Interest in Employer Power 08

 1.2 Measuring Employer Power 09

  Employer concentration 09

  The elasticity of labour supply to the firm 10

  Structural estimation of labour market frictions 10

  Wage markdowns from production data 11

  Indirect evidence from minimum wages 11

 1.3 What We Know: The Main Empirical Results  11

2 Methods 14

 2.1 Monopsonistic Power Index 14

  Labour market segments 14

 2.2 Conditional Inference - Linear Regression Approach 15

  2.2.1 Linear Regression (Semi-Parametric) Estimation 15

 2.3 Parametric Estimation 15

 2.4 Formal and Informal Labour Markets 16

3 Empirical Results 17

 3.1 Monopsonistic Power and Gender distribution 17

  The Gender Wage Gap 17

 3.2 Monopsonistic Power and Age Distribution 19

 3.3 Monopsonistic Power and Education Levels 20

 3.4 Monopsonistic Power and Urbanization 21

 3.5 Monopsonistic Power and Economic Sectors 22

4 How does Monopsony impact Inequality, and Productivity? 23

 4.1 Inequality 23

 4.2 Automation 25

` 4.3 Productivity 26

5 Multivariate Decomposition 28

6 Concluding Remarks 31

Appendix 32

 Appendix A. Additional Results 35

 Appendix B. Additional Results 36

 Appendix C. Additional Results 37

References 38

Acknowledgements 45