RT Journal Article
SR Electronic
T1 Monopsony in Movers
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP S50
OP s86
DO 10.3368/jhr.monopsony.0319-10111R1
VO 57
IS S
A1 Bassier, Ihsaan
A1 Dube, Arindrajit
A1 Naidu, Suresh
YR 2022
UL http://jhr.uwpress.org/content/57/S/S50.abstract
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 instrumental variable (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 three to four 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