has ex-post monopsonistic power that drives trained workers’ wages below the socially-optimal level. The emergence of …

The prevailing labour market models assume that minimum wages do not affect the labour supply schedule. We challenge … this view in this paper by showing experimentally that minimum wages have significant and lasting effects on subjects …’ reservation wages. The temporary introduction of a minimum wage leads to a rise in subjects’ reservation wages that persists even …

to reduce its labour costs. If the level of wages is sufficiently low, the firm's rate of productivity growth approaches …

performed. This gives some firms monopsony power in the market for labour trained to do more advanced tasks. Firms will assign … their better workers to the more advanced tasks performed within their ranks, and wages are compressed within firms, so that … competition can disproportionately benefit higher ability workers and widen the wages distribution. …

observable innate ability affects the variety of tasks that can be performed within a firm. This gives monopsony power to firms …. Since the degree of monopsony power is increasing with task complexity, firms whose workforces undertake more sophisticated …

other firms. This informational advantage gives the employer an ex-post monopsony power over the worker which encourages the … high and as a result employers have limited monopsony power and are willing to supply only little training, while in …