Dynamic Monopsony: Evidence from a French Establishment Panel
AbstractThis paper uses a panel of about 6000 French establishments to test some implications of the modern theory of dynamic monopsony or upward-sloping labour supply curves for average firm wages. Panel estimates provide strong evidence of a much larger long-run employer size-wage effect (ESWE) than found previously, while controlling for worker quality and compensating differentials with lagged wages, and for profitability (rent-sharing). Employment expansion also has a positive effect on wages, providing further evidence for upward-sloping labour supply (as distinct from the effect of shocks in a perfectly competitive labour market). Copyright (c) The London School of Economics and Political Science 2006.
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 73 (2006)
Issue (Month): 291 (08)
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Other versions of this item:
- Fakhfakh, Fathi & FitzRoy, Felix, 2005. "Dynamic Monopsony: Evidence from a French Establishment Panel," IZA Discussion Papers 1622, Institute for the Study of Labor (IZA).
- F. Fakhfakh & F. Fitzroy F., 2003. "Dynamic Monopsony : Evidence from a French Establishement Panel," Working Papers ERMES 0312, ERMES, University Paris 2.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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