Date of Award
Juan Carlos Lopez
Labor share, Labor share decline, Monopsony, Productivity wage gap, Wage determination
This thesis argues that wage suppression along with the decline in the labor share is caused by a rise in monopsony power realized as a significant increase in the profit share. It attributes the rise in monopsonistic behavior to the development and expansion of the modern corporation. This thesis investigates the reasons for wage suppression, identifies causes of the declining labor share left as exogenous in mainstream models, examines traditional economic wage determination and search models, and evaluates the political economy implications. This work reviews literature on imperfect competition, the corporation, contracts, search and match models, and the motivation of these models to explain wage determination. This thesis finds that traditional economic models do not accurately reflect the labor market because they neglect labor market power. The power wielded by megacorporations is responsible for widely documented wage suppression in the United States.
Copyright is held by the author. User is responsible for all copyright compliance.
Coulter, Alexandra, "The Productivity Wage Gap, Monopsony, and Labor Share Decline: An Analysis of Wage Suppression Perpetuated by Power" (2021). Electronic Theses and Dissertations. 1920.
Received from ProQuest
Economics, Labor economics