Firms' Wage Policies Impact Labor Supply, Revealing Monopsonistic Competition.
The study looked at how firm wage policies affect workers' decisions to leave their jobs. By analyzing data from Oregon, researchers found that when firms pay higher wages, employees are less likely to quit. This suggests that companies have a lot of power in determining how many workers stay or leave. The impact of firm wages on separations is about 4 times stronger than individual wages. This shows that competition among employers for workers is common, even when there are many job options available.