PT - JOURNAL ARTICLE AU - Bassier, Ihsaan AU - Dube, Arindrajit AU - Naidu, Suresh TI - Monopsony in Movers: The Elasticity of Labor Supply to Firm Wage Policies AID - 10.3368/jhr.monopsony.0319-10111R1 DP - 2021 Apr 13 TA - Journal of Human Resources PG - 0319-10111R1 4099 - http://jhr.uwpress.org/content/early/2021/04/05/jhr.monopsony.0319-10111R1.short 4100 - http://jhr.uwpress.org/content/early/2021/04/05/jhr.monopsony.0319-10111R1.full AB - We estimate the impact of the firm component of hourly wage variation on separations from matched Oregon employer-employee data. We use both firm fixed effects estimated from a wage equation as well as a matched IV event study around employment transitions between firms. Separations decline with firm wage policies: the implied firm-level labor supply elasticities are around 4, consistent with recent quasi-experimental evidence, but 3 to 4 times larger than existing estimates using individual wages. We find that monopsonistic competition is pervasive, even in low-wage, high turnover sectors, but with little heterogeneity by labor market concentration.