Estimating the Firm's Labor Supply Curve in a New Monopsony Framework: Schoolteachers in Missouri

• 成果类型: Article; Proceedings Paper
• 署名作者: Ransom, Michael R.; Sims, David P.
• 署名单位: Brigham Young University
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/649904
• 发表日期: 2010
• 页码: 331-355
• 关键词: opportunity costs; salaries; wages

摘要

In the context of certain dynamic models, it is possible to infer the elasticity of labor supply to the firm from the elasticity of the quit rate with respect to the wage. Using this property, we estimate the average labor supply elasticity to public school districts in Missouri. We leverage the plausibly exogenous variation in prenegotiated district salary schedules to instrument for actual salary. These estimates imply a labor supply elasticity of about 3.7, suggesting that school districts possess significant market power. The presence of monopsony power in this teacher labor market may be partially explained by its institutional features.