Seminars & Events

Special Seminar

"How Monopsonistic and Monopolistic Competition Affects Wage Disparities?"

We develop a general equilibrium model in which firms employ different types of labor. Firms are endowed with market power that allows them to be price-makers and wage-setters. First, firms face upward sloping labor supplies because idiosyncratic non-pecuniary conditions interact with wages in workers’ decisions to work for specific firms. Second, we pin down the existence of a double exploitation of labor whose intensity depends on the interaction between the product and labor markets. Third, the heterogeneity within each type of labor implies that the high-productive workers tend to be overpaid, whereas the low-productive workers would be underpaid. However, intensifying competition on the goods market shrinks the discrepancy between wages and workers’ productivity. Last, we offer a theory of differential discrimination in which gender pay inequality varies with women’s family status.


April 13, 2015 (Monday) 13:30-15:00


Jacques-François Thisse (The Center for Operations Research and Econometrics, Université catholique de Louvain(CORE UCL), Professor)




Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain your organizer's signature on your admission card after the seminar.

Institute of Developing Economies
Toshitaka Gokan
E-mail:Toshitaka_Gokan E-mail