Do Local Amenities Increase Monopsony Power?

Christiana Hilmer () and Michael Hilmer ()
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Christiana Hilmer: San Diego State University
Michael Hilmer: San Diego State University

Economics Bulletin, 2019, vol. 39, issue 4, 2467-2475

Abstract: We ask whether workers in high amenity locations are willing to cede greater degrees of monopsony power to their employers in exchange for the ability to remain in their more desirable locales. Our hypothesis is that negative returns to seniority should be greater for workers in higher amenity locations than for otherwise similar workers in lower amenity locations. Empirical evidence from a sample of public Ph.D. programs is consistent with this prediction. Using property values as well as number of pleasant days as a proxy for local amenities we find that the estimated negative returns to seniority are between 1.3 and 4.1 percent larger for higher property values locations and the negative returns to seniority are between 1.3 and 5.3 percent

Keywords: Monopsony Power; Public-sector pay; Local Amenities (search for similar items in EconPapers)
JEL-codes: I2 J3 (search for similar items in EconPapers)
Date: 2019-11-03
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