Labor economics often assumes that wages w are equal to the marginal revenue product of labor MRP L. However, recent … literature has shown that firms' market power allows them to pay wages substantially below marginal productivity. The markdown … workers' heterogeneous preferences over jobs that differ in wages and amenities. Finally, in search and matching models, it …

, allowing for the possibility that wages are determined according to an efficient bargaining process between employers and … of our empirical relationship between the price-cost margin and an alternative specification of imperfect competition of …