Title
The Elasticity of Labor Supply at the Establishment Level
Author(s)
Torberg Falch Torberg Falch (Norwegian University of Science and Technology)
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.
Creation Date
2008-12
Section URL ID
IRS
Paper Number
536
URL
https://dataspace.princeton.edu/bitstream/88435/dsp01s4655g58f/1/536.pdf
File Function
Jel
C23, C24, I29, J22
Keyword(s)
Labor supply elasticity; teacher supply; monopsony, monopsony papers
Suppress
false
Series
1