22
MAI
2023
14:15
- 15:45
IWH Research Seminar
Monopsony Makes Firms Not Only Small but Also Unproductive: Why East-Germany Has Not Converged
Wer
Rüdiger Bachmann
(University of Notre Dame)
Wo
IWH, conference room, Leipziger Straße 100 and via Zoom
When employers face a trade-off between growing large and paying low wages — that is, when they have monopsony power — some productive employers will decide to acquire fewer customers, forgo sales, and remain small.