Labor market competition over the business cycle
通过双寡头模型，研究经济繁荣和衰退如何影响收入不平等、企业规模分布和劳动力市场松弛，发现冲击的影响取决于经济所处的均衡状态。
Abstract With a duopsony model, we study how earnings inequality, firm size distribution, and labor market slack vary across local labor markets and the business cycle. In booms, due to high aggregate productivity, there is fierce competition with resulting high wages and full employment. During recessions, there is labor market slack and firms enjoy local market power. In periods in which the economy is moving into or out of a recession, there is an “accommodation” phase, with firms shrinking their labor forces and paying lower wages instead of competing for poached workers. We show that the impact of economic shocks on wage dispersion and inequality may vary not only due to the nature of the shock, but also based on which equilibrium the economy may have settled in.