MONOPSONY, WAGES AND WORKING CONDITIONS

This year’s conference will focus on the presence of non-competition clauses in employment contracts and no-poaching, collusive agreements between companies, which limit worker mobility by giving employers monopoly power. Data on the presence of hiring concentration and no-poaching clauses in several OECD countries will be presented. It will be shown how hiring concentration goes hand in hand with lower wages. Monopsony power is in fact often used to lower wages below labour productivity and not to invest in improving working conditions.

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