The Effect of Minimum Salaries on Employment of Teachers: A Test of the Monopsony Model

William M. Boal

Southern Economic Journal, 2009, vol. 75, issue 3, 611-638

Abstract: The market for schoolteachers, at least outside metropolitan areas, has frequently been cited as an example of labor monopsony. To test for monopsony, this study measures the employment effects of increases in state‐mandated minimum salaries in two nonunion states: South Carolina and Texas. In South Carolina, there is weak evidence of a negative effect in rural school districts, with an estimated short‐run demand elasticity of about –0.2. In Texas, there is strong evidence of a negative effect in both urban and rural school districts, with an estimated short‐run demand elasticity of about –0.4. These results apparently reject the monopsony model of the market for schoolteachers.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/j.2325-8012.2009.tb00923.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:75:y:2009:i:3:p:611-638

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().