Discover and read the best of Twitter Threads about #monopsony

Most recents (5)

This morning, I’m testifying before @housebudgetdems about how economic inequality is harming our economy—and what policymakers can do to fix it equitablegrowth.org/testimony-by-h…
GDP growth has been treated for decades by pundits and policymakers alike as synonymous with prosperity.

But where overall growth of the economic pie was once broadly representative of the lived experiences of most Americans, that is no longer true.
The distribution of wealth across U.S. households is now even more unequal than income:

The top 1% now controls 42% of all wealth and the top 0.1% controls more than 22% of all wealth in the U.S. economy--3x as much as a generation ago.
Read 19 tweets
THE MIDDLE MAN VALUE CHAIN: THE BRITISH AND CHINESE CASE IN IGBOLAND

The 1901 Aro Expedition of 1901 was a violent ousting of the Aro merchants(middle men) who ran a cartel of slaves in the Niger area

The British grew from staying around the shores to desiring to enter the..
hinterlands.

They had found a cure for malaria and wanted to eliminate the middle man (Aro merchants mostly) who were the feeder bloc of slaves and other wares.

The Aro merchants refused and it led to a violent attack against them-In fact, 'cos the Aro were popular, they...
Thought they had a military. The Brita attacked with full notary hardware.

The middle men were eliminated and it established a kind of #Monopsony where the Brits dictated the price. For the people's wares, they gave money that had value, because now, they were forced to sell.
Read 10 tweets
With Labor Day this weekend, there is a growing call for more union power to balance wealthy corporate power. In the midst of all the campaign platforms and worker actions, I looked into the role of strikes in my latest for @equitablegrowth: equitablegrowth.org/the-once-and-f… 1/12
Research by @awh finds that support for unions has increased and workers specifically want collective bargaining and benefits like healthcare from unions. Workers tend to not like strikes, but support increases when paired with collective bargaining. 2/12
"What Unions No Longer Do" by @JakeRosenfeld1 shows that strikes peaked in the 80s and declined since then. Anti-union business tactics and Taft-Hartley limitations on striking caught up with the labor movement, rendering strikes less successful than they once were. 3/12
Read 12 tweets
New revolutionary #minimumwage paper: the introduction of the minimum wage in Germany did not decrease employment and allowed workers to move to better higher paying firms, consistent with the #monopsony model papers.nber.org/conf_papers/f1…
Forgot to mention #NBERSI for this great #minimumwage paper. For the #monopsony theory, see here: pubs.aeaweb.org/doi/pdfplus/10…. Basic intuition is that less productive firms lose employment while more productive firms who were previously underpaying workers are able to hire more.
This is great work by @attilalindner, Dustmann, Schoenberg, Umkehrer and vom Berge! Consistent with our results that #minimuwage employment effects depend on #monopsony power as measured by concentration
Read 8 tweets
THREAD on #monopsony and #antitrust implications

1. Intellectual foundations back to work of Joan Robinson (1933) – eminent woman economist btw, too often neglected. She became full professor only in 1965 – 6 years before retiring
2. Here’s the theory :
-In a competitive labour market, each worker receives her/his marginal product
-Labour supply is upward sloping: need to pay more to attract more workers
-If a single firm buys inputs, will try to BUY LESS in order to drive WAGES DOWN
3. More and more evidence I cannot review here, coming from terrific work of @joseazar @mioana @Econ_Marshall @glenweyl @Alan_Krueger @arindube et al. Most comes from US data, but also Europe e.g. Silvana Tenreyro et al.
Read 9 tweets

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