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dc.contributor.authorBooth, Alison L.en_US
dc.contributor.authorKatic, Pamelaen_US
dc.date.accessioned2011-05-11en_US
dc.date.accessioned2011-06-28T13:52:37Z-
dc.date.available2011-06-28T13:52:37Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/45986-
dc.description.abstractIn this paper we estimate the elasticity of the labour supply to a firm, using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. Estimation of this elasticity is of particular interest not only in its own right but also because of its relevance to the debate about the competitiveness of labour markets. The essence of monopsonistically competitive labour markets is that labour supply to a firm is imperfectly elastic with respect to the wage rate. The intuition is that, where workers have heterogeneous preferences or face mobility costs, firms can offer lower wages without immediately losing their workforce. This is in contrast to the perfectly competitive extreme, in which the elasticity is infinite. Therefore a simple test of whether labour markets are perfectly or imperfectly competitive involves estimating the elasticity of the labour supply to a firm. We find that the Australian wage elasticity of labour supply to a firm is around 0.71, only slightly smaller than the figure of 0.75 reported by Manning (2003) for the UK. These estimates are so far from the perfectly competitive assumption of an infinite elasticity that it would be difficult to make a case that labour markets are perfectly competitive.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5167en_US
dc.subject.jelJ42en_US
dc.subject.jelJ21en_US
dc.subject.jelJ71en_US
dc.subject.ddc330en_US
dc.subject.keywordmonopsonyen_US
dc.subject.keywordimperfect competitionen_US
dc.subject.keywordseparationen_US
dc.subject.keywordlabour supply elasticityen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwLohnniveauen_US
dc.subject.stwElastizitäten_US
dc.subject.stwUnvollkommener Wettbewerben_US
dc.subject.stwMonopsonen_US
dc.subject.stwSchätzungen_US
dc.subject.stwAustralienen_US
dc.titleEstimating the wage elasticity of labour supply to a firm: What evidence is there for monopsony?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn657574295en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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