The Fight for Wage Standards: Monopsony and Collective Bargaining

This article provides an in-depth analysis of the contemporary labor market, challenging the neoliberal dogma of wages as fair market prices. Drawing on the work of Arindrajit Dube, the author exposes the phenomenon of monopsony and the asymmetry of power between employers and employees. The article argues that wage stagnation and growing inequality are not a natural process but rather the result of weakening institutions such as collective bargaining. In the context of the EU Directive on Adequate Minimum Wages, the author argues for the need to rebuild sectoral agreements. The analysis recalls historical models such as the Great Compression, emphasizing that fair remuneration requires a strong institutional framework, not just a belief in market self-regulation, especially in the age of digitalization and globalization.