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Policy complementarities to curb market power and raise real wages

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  • Eckardt, Marcel Steffen
  • Neugart, Michael

Abstract

Recent evidence suggests that anti-competitive behavior of firms negatively affects workers’ real wages. Typically, policy actions relate to antitrust regulation and rarely to measures that curb employers’ monopsony power. We show that policymakers who want to raise workers’ real wages should address both types of market power simultaneously to gain from a policy complementarity.

Suggested Citation

  • Eckardt, Marcel Steffen & Neugart, Michael, 2022. "Policy complementarities to curb market power and raise real wages," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 131211, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:131211
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/131211/
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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