The Elasticity of Labor Supply at the Establishment Level
AbstractMonopsonistic wage-setting power requires that the supply of labor directed toward individual establishments is upward sloping. This study utilizes institutional features to identify the supply curve. The elasticity of labor supply is estimated using data for the Norwegian teacher labor market in a period where the only variation in the wage level was determined centrally and with information on whether there is excess demand or not at the school level. In fixed-effects models, the supply elasticity faced by individual schools is estimated to about 1.4 and is in the range 1.0-1.9 in different model specification. (c) 2010 by The University of Chicago. All rights reserved..
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 28 (2010)
Issue (Month): 2 (04)
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