Monopsony and the Worker

Jordan Weissmann reports on a study entitled "Labor Market Concentration" (José Azar, Ioana Marinescu, & Marshall I. Steinbaum, 2017), which argues that many employees in America are working in an environment where a "lack of competition among employers gives businesses outsize power over workers, including the ability to tamp down on pay ." Weissmann contends that this should be considered when governments set economic policy, including approving the mergers of huge companies.

-DD