The average wage gap between employees in major metropolitan hubs and those in provincial regions has increased from 11% to 19% over the past fifteen years. However, this wage differential is over 35% in professional scientific and technical activities, whereas it is negligible, or even negative, in many local public services and administrative sectors.
Evaluate, using appropriate labor market diagrams, the extent to which wage differentials are primarily caused by the market power of monopsonistic employers.
