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Labor Practices Can Be an Antitrust Problem Even When Labor Markets Are Competitive

BY | June 12, 2020

In this article I argue that labor practices that are detrimental to workers can be an antitrust problem even if the labor market is highly competitive. The reason is that…

In this article I argue that labor practices that are detrimental to workers can be an antitrust problem even if the labor market is highly competitive. The reason is that even if a worker has many identical job offers ex ante, once the job match is formed, it is costly to dissolve. The desire to avoid these costs confers surplus that is specific to the match. This surplus will be divided via bilateral bargaining between the worker and the firm, and not in the context of the competitive labor ma

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