Monday Smackdown/Hoisted from 2008: Why We Called Donald Luskin "The Stupidest Man Alive"

Kate Bahn: Understanding the Importance of Monopsony Power in the U.S. Labor Market: "In a dynamic monopsony model, so-called search frictions—including imperfect information and other constraints to job mobility... would give employers more power to set wages below competitive levels, while still maintaining a sufficient supply of workers.... Doug Webber tests the hypothesis of widespread dynamic monopsony and whether search frictions appear to maintain low wages across the U.S. labor market in his 2015 paper, 'Firm market power and the earnings distribution'. Webber finds pervasive monopsony across the labor market, with the key finding that less monopsony power would lead to less income inequality...