Estimados Académicos y Académicas FEN,

Les extendemos la invitación al seminario que organiza el Departamento de Economía, en el que se presentará el trabajo titulado "Monopsony Makes Firms not only Small but also Unproductive: Why East Germany has not Converged".

Expone: Rüdger Bachmann, Stephan Family College Professor of Economics, University of Notre Dame.

Co-autores: Cristian Bayer, Heiko Stüber y Feliz Weilshmied.

Abstract: When employers face a trade-off between being large and paying low wages—and in this sense have monopsony power—some productive employers decide to acquire few customers, forgo sales, and remain small. These decisions have adverse consequences for aggregate labor productivity. Using high-quality administrative data from Germany, we document that East German plants (compared to West German ones) face steeper size-wage curves, invest less into marketing, remain smaller, and are less productive. A model with labor market monopsony, product market power, and customer acquisition matching these features of the data predicts ten percent lower aggregate labor productivity in East Germany. 

Link al paper: https://sites.nd.edu/rbachman/files/2023/04/BBSW_monopsony.pdf

El formato será presencial y el seminario se desarrollará en la Sala P-303.

Saludos cordiales,

Dirección de Investigación