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Concentration in the Labor Market for Public School Teachers

Author

Listed:
  • James Luizer
  • Robert Thornton

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.

Suggested Citation

  • James Luizer & Robert Thornton, 1986. "Concentration in the Labor Market for Public School Teachers," ILR Review, Cornell University, ILR School, vol. 39(4), pages 573-584, July.
    • Handle: RePEc:sae:ilrrev:v:39:y:1986:i:4:p:573-584
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    Citations

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    Cited by:

    1. Lori L. Taylor, 2010. "Competition And Teacher Pay," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 603-620, July.
    2. Austan Goolsbee & Chad Syverson, 2023. "Monopsony Power in Higher Education: A Tale of Two Tracks," Journal of Labor Economics, University of Chicago Press, vol. 41(S1), pages 257-290.
    3. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    4. Kevin Rinz, 2018. "Labor Market Concentration, Earnings Inequality, and Earnings Mobility," CARRA Working Papers 2018-10, Center for Economic Studies, U.S. Census Bureau.
    5. 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.
    6. William M. Boal, 2009. "The Effect of Minimum Salaries on Employment of Teachers: A Test of the Monopsony Model," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 611-638, January.
    7. 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.
    8. Michaelides, Marios, 2010. "Labour market oligopsonistic competition: The effect of worker immobility on wages," Labour Economics, Elsevier, vol. 17(1), pages 230-239, January.
    9. Richard Disney & Jelena LauĊĦev, 2011. "Monopsony With Heterogeneous Labour: Evidence From Economic Transition," Discussion Papers 11/11, University of Nottingham, School of Economics.
    10. Christian Jansen, 2003. "Economic Effects of the New German Copyright Contract Law," Law and Economics 0302003, University Library of Munich, Germany.

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