Seminar by Peter Brummund (University of Alabama)

Centre for Development Economics
Department of Economics
Delhi School of Economics

ANNOUNCE A SEMINAR

by

Venue: Amex Room

Abstract:-
Participation in social groups ties members to local communities. Employers can capture these benefits as rents when geographically-specific club goods raise the cost of labor mobility. We measure ties to local clubs using the shares of households identifying with a minority religion, enrollment of children in Islamic schools, and membership in secular savings clubs. We identify larger wage markdowns where households have stronger ties to local club goods. Complementarity between labor market concentration and club goods offers an explanation of rising wage markdowns absent increases in concentration, while adding to the difficulty in separating monopsony rents from compensating wage differentials.

All are cordially invited.

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