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).
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1622.
Length: 23 pages
Date of creation: Jun 2005
Date of revision:
Publication status: published in: Economica, 2006, 73 (291), 533-545
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Other versions of this item:
- Fathi Fakhfakh & Felix Fitzroy, 2006. "Dynamic Monopsony: Evidence from a French Establishment Panel," Economica, London School of Economics and Political Science, vol. 73(291), pages 533-545, 08.
- 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; Spatio-temporal Models
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-14 (All new papers)
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