Monopsony gives firms the power to reduce wage payments to workers while on the other
hand requirements for applicants could rise. We use unique data for Austria where we can
observe vacancies with posted wages along with actual wages paid to workers on the job to
explore how monopsony power of firms manifests itself in wage negotiations. Preliminary
results show that actual wages as well as job amenities are lower in monopsony situations,
whereas firms require higher qualifications from applying workers.
Forschungs-