Labor Market Monopsony Power and the Dynamic Gains to Openness Reforms

• 成果类型: Article; Early Access
• 署名作者: Jha, Priyaranjan; Rodriguez-Lopez, Antonio; Spencer, Adam Hal
• 署名单位: University of California System; University of California Irvine; Leibniz Association; Ifo Institut; University of Bonn
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.70077
• 发表日期: 2026
• 关键词: margins; export; COSTS; AGREEMENTS; INNOVATION

摘要

We embed labor market monopsony into a dynamic heterogeneous-firm general equilibrium model with exporting, horizontal FDI, and rich firm lifecycle dynamics. Rising marginal costs with monopsony slow and limit incumbent firm growth in response to liberalization, shifting adjustment to the extensive margin. Calibrated to US micro data, welfare gains from tariff reduction are over four times larger under monopsony than with perfect labor markets. The difference is mostly driven by new exporter creation and firm entry along the transition path. By contrast, lowering outward FDI taxes gives powerful quantitative welfare losses under monopsony, as firms undertake FDI to escape domestic wage pressure.