Work

Employer branding and monopsony power in the labour market: a vignette experiment

Year: 2024

Type: article

Abstract: Many firms engage in marketing efforts to improve their image as an employer (employer branding [EB]). This article re-conceptualises EB as an instrument used by firms to increase their monopsonistic power (Robinson, 1933), that is, the power of firms to set wages below the level that would be expected in a competitive labour market. To test this hypothesis, we perform a vignette experiment using original data collected via Amazon Mechanical Turk in which we randomly vary wage offers at employer-branded and not-branded firms. Our results indicate that employer-branded firms possess more monopsonistic power, particularly over male workers. We conclude by arguing that the wage-setting power of firms not only arises from illegal practices and clear aberrations of the economic system—as is the dominant discourse—but also from certain legal and widely accepted business practices.

Source: Cambridge Journal of Economics

DOI: 10.1093/cje/beae033

Authors: Céline Detilleux, Nick Deschacht

Institution: KU Leuven

Language: English

Topic: Employer Branding and e-HRM

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,594