PRELIMINARY – COMMENTS WELCOME The Plant Size-Place Effect: Agglomeration and Monopsony in Labour Markets
نویسنده
چکیده
This paper shows, using data from both the US and the UK, that average establishment size is larger in denser market areas. However, canonical versions of theories of agglomeration – spill-overs, cost advantages and improved match quality – all predict that establishments should be smaller in cities. The paper proposes a theory based on monopsony in labour markets that can explain the stylized fact – that firms in all labour markets have some market power but that they have less market power in cities. It also presents further evidence in support of this hypothesis.
منابع مشابه
The Plant Size-Place Effect: Agglomeration and Monopsony in Labour Markets
This paper shows, using data from both the US and the UK, that average plant size is larger in denser markets. However, many popular theories of agglomeration – spillovers, cost advantages and improved match quality – predict that establishments should be smaller in cities. The paper proposes a theory based on monopsony in labour markets that can explain the stylized fact – that firms in all la...
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