Labor

In two recent papers, Matthew E. Kahn and Joseph Tracy examine the outcomes of local labor markets affected by monopsony power. They find that in areas with a high degree of monopsony power, workers earn lower wages but are compensated with lower house prices, at the expense of homeowners. Monopsony markets also experience a “brain drain” over time due to young, educated workers who leave for better opportunities. The rise of work-from-home may accelerate this dynamic by allowing talent to change labor markets without changing residences.

Drawing on the theory of Albert O. Hirschman’s  Exit, Voice, and Loyalty, Brian Callaci argues non-compete clauses stifle the important channels of communication between employees and businesses necessary for improving firm competitiveness. The evidence also shows that, despite claims from businesses, non-competes harm rather than reward employees for their loyalty. 

A new empirical study examines whether advancements in automation and robotics have affected intergenerational income mobility. The authors find that parents’ exposure to new...

The gender pay gap is a well-documented phenomenon in global labor markets, but this gap does not seem to apply to the pay of...

Decades of progress have seen greater opportunities for women in the workplace, but sizable gender gaps still remain. Stefania Albanesi, Claudia Olivetti and Barbara...

A growing literature on income inequality and labor earnings has overlooked the contribution of disparities in hours worked. In new research with Lara Vivian,...