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Concentration in the labor market for public school teachers

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  • James Luizer
  • Robert Thornton
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    Abstract

    Recent studies that have investigated the relationship between the monopsony power of school districts and teachers' salaries have reached conflicting conclusions. The authors of this paper argue that the discrepancies among previous studies may be due to the arbitrary demarcation of the boundaries of teacher labor markets and the use of faulty measures of monopsony. Using a new procedure for defining teacher labor market boundaries and several alternative indices of concentration, this study finds evidence of monopsonistic activity in local teacher labor markets in Pennsylvania. The monopsony wage effects are small, however, and are present mainly at the mid-to-upper ranges of the bachelor's degree salary scale. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 39 (1986)
    Issue (Month): 4 (July)
    Pages: 573-584

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    Handle: RePEc:ilr:articl:v:39:y:1986:i:4:p:573-584

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    Cited by:
    1. Condon, Daniel, 2002. "Monopsony power and the market for clergy: Some evidence from the census," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(5), pages 889-900.
    2. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    3. Michaelides, Marios, 2010. "Labour market oligopsonistic competition: The effect of worker immobility on wages," Labour Economics, Elsevier, vol. 17(1), pages 230-239, January.
    4. Jesse Rothstein, 2004. "Good Principals or Good Peers? Parental Valuation of School Characteristics, Tiebout Equilibrium, and the Effects of Inter-district Competition," NBER Working Papers 10666, National Bureau of Economic Research, Inc.
    5. Christian Jansen, 2003. "Economic Effects of the New German Copyright Contract Law," Law and Economics 0302003, EconWPA.

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