The American economy no longer functions to the benefit of American workers. Despite record profits and increased productivity, wages have been stagnant. In fact, despite being 75 percent more productive in 2016 than in 1973, the average worker earned just 12 percent more.
An emerging body of research chronicles the extent of labor market monopsony—where employers have the discretion to set wages and working conditions on their own terms, without fearing that their workers could check their power by finding another job. “A Missing Link: The Role of Antitrust Law in Rectifying Employer Power in Our High-Profit, Low-Wage Economy” explains what labor market monopsony is, describes what it means for workers and the economy, and proposes ways to address it.