Jha, Priyaranjan; Rodríguez López, Antonio - 2021
minimum wages and firm variety in the U.S. restaurant and retail-trade industries. To explain this finding, we construct a … heterogeneous-firm model with a monopsonistic labor market and endogenous firm variety. The decentralized equilibrium underprovides … the mass of firms, exacerbating the distortion. Workers value employer variety, and thus, by reducing firm variety the …