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The elasticity of labor supply at the establishment level

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  • TORBERG FALCH

    (Norwegian University of Science and Technology)

Abstract

Monopsonistic wage-setting power requires that the supply of labor directed toward individual establishments is upward sloping. This paper 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 1.5, and is in the range 1.0–1.9 in different model specification.

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Bibliographic Info

Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1106.

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Date of creation: Dec 2008
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Handle: RePEc:pri:indrel:dsp01s4655g58f

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Keywords: Labor supply elasticity; teacher supply; monopsony; monopsony papers;

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Cited by:
  1. Depew, Briggs & Sørensen, Todd A., 2013. "The elasticity of labor supply to the firm over the business cycle," Labour Economics, Elsevier, vol. 24(C), pages 196-204.
  2. Hof, Stefanie & Strupler, Mirjam & Wolter, Stefan C., 2011. "Career Changers in Teaching Jobs: A Case Study Based on the Swiss Vocational Education System," IZA Discussion Papers 5806, Institute for the Study of Labor (IZA).
  3. Malchow-Møller, Nikolaj & Munch, Jakob R. & Skaksen, Jan Rose, 2011. "Do Foreign Experts Increase the Productivity of Domestic Firms?," IZA Discussion Papers 6001, Institute for the Study of Labor (IZA).
  4. Depew, Briggs & Sorensen, Todd A., 2011. "Elasticity of Supply to the Firm and the Business Cycle," IZA Discussion Papers 5928, Institute for the Study of Labor (IZA).
  5. Torberg Falch, 2010. "Teacher mobility responses to wage changes: evidence from quasi-natural experiment," Working Paper Series 10910, Department of Economics, Norwegian University of Science and Technology.
  6. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2011. "Econometric methods for causal evaluation of education policies and practices: a non-technical guide," Education Economics, Taylor & Francis Journals, vol. 19(2), pages 109-137.
  7. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo Group Munich.
  8. DUPUY Arnaud & SORENSEN Todd, 2013. "On Input Market Frictions and Estimation of Factors' Demand," CEPS/INSTEAD Working Paper Series 2013-13, CEPS/INSTEAD.
  9. Hirsch, Boris & Jahn, Elke J. & Schnabel, Claus, 2013. "The cyclical behaviour of employers' monopsony power and workers' wages," Discussion Papers 89, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  10. Depew, Briggs & Norlander, Peter & Sorensen, Todd A., 2013. "Flight of the H-1B: Inter-Firm Mobility and Return Migration Patterns for Skilled Guest Workers," IZA Discussion Papers 7456, Institute for the Study of Labor (IZA).
  11. Orley C. Ashenfelter & Henry Farber & Michael R. Ransom, 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey," Working Papers 1223, Princeton University, Department of Economics, Industrial Relations Section..
  12. Karbownik, Krzysztof, 2014. "Job mobility among high-skilled and low-skilled teachers," Working Paper Series 2014:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  13. Stefanie Hof & Mirjam Strupler & Stefan C. Wolter, 2011. "Quereinsteiger in den Lehrberuf am Beispiel der schweizerischen Berufsbildung," Economics of Education Working Paper Series 0059, University of Zurich, Institute for Strategy and Business Economics (ISU).

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