between 15% and 50% implying that wages would increase by 15 to 50% if firms' monopsony power were eliminated. Finally, we … control in antitrust policy, the regulation of non-competition agreements, and minimum wages. Monopsony power helps explain …Labor economics often assumes that wages w are equal to the marginal revenue product of labor MRP L. However, recent …

representative German plant data for the years 1999-2016, we document that 70% of employers pay wages below the marginal revenue … product of labour and 30% pay wages above. We further find that the prevalence of wage mark-downs is significantly smaller … when organised labour is present and that the ratio of wages to the marginal revenue product of labour is significantly …