Testing for Employer Monopsony in Turn-of-the-Century Coal Mining
AbstractIsolated company towns are often cited as likely examples of labor monopsony. This article tests for monopsony power by estimating inverse labor supply elasticities using a county-level panel dataset on nonunion West Virginia coal mining from 1897 to 1932. The model specification incorporates dynamics in such a way that an estimate of the gap between marginal revenue product and the wage can easily be computed as a weighted average of short- and long-run inverse elasticities. Modest estimated short-run inverse elasticities and very small long-run inverse elasticities imply that coal operators enjoyed little, if any, monopsony power over their workers.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 26 (1995)
Issue (Month): 3 (Autumn)
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Web page: http://www.rje.org
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- Wojan, Timothy R. & Lackey, Steven Brent, 2000.
"Manufacturing Specialization in the Southeast: Rural Necessity, Rural Possibility, or Rural Vestige?,"
The Review of Regional Studies,
Southern Regional Science Association, vol. 30(2), pages 167-187, Fall.
- Lackey, Steven Brent & Wojan, Timothy R., 1999. "Manufacturing Specialization In The Southeast: Rural Necessity, Rural Possibility Or Rural Vestige?," 1999 Annual meeting, August 8-11, Nashville, TN 21605, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
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