@techreport{Thisse2010distribution,
abstract = {Recent empirical contributions in labor economics suggest that individual firms face upward sloping labor supplies. We rationalize this by assuming that  diosyncratic non-pecuniary conditions interact with money wages in workers' decisions to work for specific firms. Likewise, firms supply differentiated goods in response to differences in consumer tastes. Hence, firms are price-makers and wage-setters. By combining monopolistic and monopsonistic competition, our setting encapsulates general equilibrium interactions between the two markets. The equilibrium involves double exploitation of labor. Compared to the competitive outcome, the high-productive workers are overpaid under free entry, whereas the low-productive workers are underpaid. In the same vein, capital-owners receive a premium, whereas workers are exploited.},
address = {Bonn},
author = {Jacques-Fran\c{c}ois Thisse and Eric Toulemonde},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D33; J31; J42; J71; L13; 330; worker heterogeneity; monopsonistic competition; monopolistic competition; labor exploitation; wage dispersion},
language = {eng},
note = {urn:nbn:de:101:1-201010133403},
number = {5136},
publisher = {IZA},
title = {The distribution of earnings under monopsonistic/polistic competition},
type = {Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit},
url = {http://hdl.handle.net/10419/44237},
year = {2010}
}
