The employer size-wage effect: is monopsony the explanation?
London School of Economics and Political Science Research Online (London School of Economics and Political Science)Published 1 June 1992
Francis Green, Stephen Machin, Alan Manning
Citations18
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Abstract
This paper looks at evidence on the employer size-wage effect for the UK using data from the General Household Survey, British Social Attitudes Survey and the Workplace Industrial Relations Survey. We find that much larger effects in the non-union sector and for women. We consider various theoretical explanations for the size-wage effect and conclude that our findings are most consistent with a dynamic monopsony model.
Keywords
Social SciencesEconomics, Econometrics and FinanceHealth Professions