The Elasticity of Labor Supply at the Establishment Level

Torberg Falch

No 1106, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

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.

Keywords: Labor supply elasticity; teacher supply; monopsony, monopsony papers (search for similar items in EconPapers)
JEL-codes: C23 C24 I29 J22 (search for similar items in EconPapers)
Date: 2008-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: The Elasticity of Labor Supply at the Establishment Level (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:536

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