#monopsony — Public Fediverse posts

The hidden power keeping wages low
https://www.npr.org/sections/planet-money/2026/04/21/g-s1-118071/the-hidden-power-keeping-wages-low
#Monopsony theory explains how employer dominance suppresses wages by distorting competitive market dynamics. Modern research reveals that market concentration and search frictions grant firms widespread control over pay; most employers have power to keep #wages low because worker options are actually limited. This explains why minimum wage hikes often raise incomes without reducing employment as once predicted. While new rules could raise pay, these fixes are limited by the choices of politicians and companies.
#laborMarkets

@lkanies

Form a fibre coop with neighbours

Edit, red states may have laws that force you to "choose" which oligarch to pay and prevent personal, coop and/or municipal coops. Because oligarchs need freedom, and Americans need frightened obedience.

https://jasondeegan.com/unhappy-with-his-internet-provider-a-man-sets-up-his-own-network-and-competes-with-his-former-provider/

#coup #oligarchs #freedumb #fibre #monopsony #monopoly #coerce

"The minimum wage in Mexico has more than doubled in real terms over the last six years. This is no small feat, especially if we take into account that the policy neither led to feared job losses nor price increases. This was partly because the Mexican minimum wage was well below those of other Latin American countries. With the latest increase, however, Mexico’s minimum wage is now greater than those in half of the region. Each successive increase has helped more people—in the first year, the increase benefited 13.3 percent of the formal labor force and by 2025 it benefited 37.4 percent, representing around 8.4 million workers.

With the radical shift in Mexico’s wage policy, these recent increases in the minimum wage—while translating into an average income growth of 25 percent in real terms and a significant decrease in poverty and inequality—have only begun to chip away at corporate power. The share of wages has only grown slightly, and the negligible increase in unemployment and inflation underscores drastic asymmetries in the relationship between employers and workers. The Mexican labor market is extremely monopsonistic, in part because there are relatively few large companies, but also due to poor labor law enforcement and weak unions. Common labor practices in Mexico allow firms to exercise more power to determine wages well below what they would be in a perfectly competitive market, which has led to the prevalence of high profits at the expense of working conditions.

Analyzing the historical evolution of the minimum wage in Mexico is fundamental to understanding how the Mexican wage policy has become a successful and innovative model. Its implementation has reduced poverty for millions of people and generated unprecedented growth in family income, defying traditional forecasts that linked minimum wage increases with uncontrolled inflation and unemployment."

https://www.phenomenalworld.org/analysis/mexico-minimum-wage/

#Mexico #MinimumWage #Poverty #PovertyReduction #Monopsony

Labor share and market power in European firms https://d.repec.org/n?u=RePEc:pra:mprapa:123442&r=&r=lma
"firms’ product and labor market power, as reflected in product markups and labor markdowns, enable firms to capture a larger share of economic output at the expense of workers.
… empirical analysis shows that markdowns are negative correlated with labor share, as firms reduce employment and suppress #wages below the marginal revenue of labor.
Product markups exhibit a dual effect: they can positively influence the labor share by increasing wages and employment when firms reinvest additional profits into production expansion. … markups indirectly reduce the labor share due to their positive link with labor markdowns. Firms with significant pricing power often suppress wages and limit hiring, diminishing the labor share.
… empirical results reveal the presence of a hump-shaped relationship between product markups and labor share. Initially, as product markups increase, the labor share rises, but this trend reverses when markups reach high levels. This nonlinearity underscores the dual nature of markups: while moderate markups have a direct positive effect on labor share, mitigating labor markdowns, high markups enable firms to exert substantial #monopsony power, diminishing the labor share.
The analysis reveals significant cross-country #heterogeneity in the effects of markups and markdowns on the labor share."
#IndustrialOrganization #LaborMarkets

Minimum Wages in Concentrated #LaborMarkets https://d.repec.org/n?u=RePEc:iza:izadps:dp17357&r=&r=lma
"Labor Market concentration turns out substantial in Germany …higher concentration reduces #wages & employment, reflecting monopsonistic conduct of firms. Sectoral minimum wages lead to negative employment effects in more competitive labor markets
…empirical support to the #monopsony argument, implying that conventional minimum wage effects on employment conceal #heterogeneity across market forms

Not great.

Source: https://pluralistic.net/2024/05/23/spineless/

#monopoly #monopsony #consolidation #PrivateEquity #anticompetitive #economy #economics #USpol #politics #healthcare

Editorial re: anniversary of March 23, 2010 Obamacare #AffordableCareAct #PPACA #ACA signing by Mr. #AudacityOfHope #Obama #HopeChange #ObamaBiden #JoeBiden

#SinglePayer #MedicareForAll #Americare #UniversalHealthCoverage #UHC2030 #monopsony🙏🖖> #PublicOption👍(#Baucus #Lieberman, #Podesta, et al. sabotage🖕) > #Obamacare / Heritage Foundation #RomneyCare☹️ pre-ACA gaslit / Stockholm syndrome pre-existing condition health insurance disqualification, denial👎😡🖕
Cc: @PDAmerica

@luckytran
Expanded, improved world-class MedicareForAll: U.S.A. Uncle Sam's AmeriCare: healthcare where and when you need, Uncle Sam pays the bills.👍🖖😊

"Health insurance premiums, high *annual* deductibles, co-pays, closed networks, medical bankruptcy😡 are a human right"… said no one ever.☹️ #MedicareForAll: free at point of care, will save you money👍 but… "nah, socialism!"☹️
#M4A #AmeriCare #UniversalHealthcare #UniversalHealthCoverage #UHC2030 #UHC #EverybodyInNobodyOut #monopsony

@humanetech @theruran @pixouls

In the interests of the times we rather awkwardly recommended the #ShopEthical website, we are following up with the this open letter.

Dear ShopEthical.Org.Au,
Your site gives Amazon an F-rating.
Why are you then hosting it on Amazon servers?

https://www.shopethical.org.au/search?q=amazon

#scAmazon #monopoly #monopsony #digitalFeudalismCounterAction

@BBCRD @Duckbill4994
Hi Mark,
It incidentally is giving money, power and influence to Amazon, and also trivially enables network-level #surveillance by Amazon.

#antitrust #monopoly #monopsony #deanonymisation

#Gespräch mit #Immanuel über #Amazon;

#Monopsony / #Monopson als #Unterschied zu #Monopol

#Fukuyama: Der #Kapitalismus hat gewonnen, die #Kommunisten #verwalten ihn am besten;

#Verwaltung #System

#Gespräch mit #Immanuel über #Amazon;

#Monopsony / #Monopson als #Unterschied zu #Monopol

#Fukuyama: Der #Kapitalismus hat gewonnen, die #Kommunisten #verwalten ihn am besten;

#Verwaltung #System