PT  - JOURNAL ARTICLE
AU  - Suresh Naidu
AU  - Eric A. Posner
TI  - Labor Monopsony and the Limits of the Law
AID  - 10.3368/jhr.monopsony.0219-10030R1
DP  - 2021 Jun 09
TA  - Journal of Human Resources
PG  - 0219-10030R1
4099  - http://jhr.uwpress.org/content/early/2021/06/02/jhr.monopsony.0219-10030R1.short
4100  - http://jhr.uwpress.org/content/early/2021/06/02/jhr.monopsony.0219-10030R1.full
AB  - Recent literature has suggested that antitrust regulation is an appropriate response to labor market monopsony. This article qualifies the primacy of antitrust by arguing that a significant degree of labor market power is “frictional,” that is, without artificial barriers to entry or excessive concentration of employment. If monopsony is pervasive under conditions of laissez-faire, antitrust is likely to play only a partial role in remedying it, and other legal and policy instruments to intervene in the labor market will be required.