Title: Dynamic Wage Setting: The Role of Monopsony Power and Adjustment Costs

Speaker: Mons Chan, Assistant Professor of Economics, Queen's University.

Abstract: In this paper we develop and estimate a general framework for identifying wage markdowns, firm/worker productivity and adjustment costs. We show novel facts: markdowns are widening in worker ability, firm size, and firm productivity. Constrained firms pay workers above their MRPL, are less profitable, are more leveraged, and have lower passthrough elasticities. We find that labor supply elasticities pin down the level of markdowns, but the variance and dynamics are driven entirely by firm-level employment costs.

Date & time: 27 May 2026, 10:00 - 11:30

Venue: B438, Zhixin Building, Central Campus, Shandong University