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Research ArticleArticles
Open Access

Labor Market Polarization, Job Tasks and Monopsony Power

Ronald Bachmann, Gökay Demir and Hanna Frings
Published online before print March 09, 2021, 0219-10011R1; DOI: https://doi.org/10.3368/jhr.monopsony.0219-10011R1
Ronald Bachmann
Ronald Bachmann is head of the research unit “Labor Markets, Education, Population” at RWI - Leibniz Institute for Economic Research in Essen, Germany, adjunct professor of labor economics at the Düsseldorf Institute for Competition Economics (DICE) at Heinrich Heine University Düsseldorf, and Research Fellow at IZA
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  • For correspondence: [email protected]
Gökay Demir
Gökay Demir is researcher at RWI and Heinrich Heine University Düsseldorf.
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Hanna Frings
Hanna Frings is deputy head of the research unit “Labor Markets, Education, Population” at RWI and Research Affiliate at IZA.
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Abstract

Using a semi-structural approach based on a dynamic monopsony model, we examine to what extent workers performing different job tasks are exposed to different degrees of monopsony power, and whether these differences in monopsony power have changed over the last 30 years. We find that workers performing mostly non-routine cognitive tasks are exposed to a higher degree of monopsony power than workers performing routine or non-routine manual tasks. Job-specific human capital and non-pecuniary job characteristics are the most likely explanations for this result. We find no evidence that labor market polarization has increased monopsony power over time.

JEL Classification:
  • J24
  • J42
  • J62

This open access article is distributed under the terms of the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0) and is freely available online at: http://jhr.uwpress.org

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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Labor Market Polarization, Job Tasks and Monopsony Power
Ronald Bachmann, Gökay Demir, Hanna Frings
Journal of Human Resources Mar 2021, 0219-10011R1; DOI: 10.3368/jhr.monopsony.0219-10011R1

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Labor Market Polarization, Job Tasks and Monopsony Power
Ronald Bachmann, Gökay Demir, Hanna Frings
Journal of Human Resources Mar 2021, 0219-10011R1; DOI: 10.3368/jhr.monopsony.0219-10011R1
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Keywords

  • J24
  • J42
  • J62
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