Please use this identifier to cite or link to this item: https://hdl.handle.net/10620/17195
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dc.contributor.authorBooth, Aen
dc.contributor.authorKatic, Pen
dc.date.accessioned2019-04-13T03:33:13Zen
dc.date.accessioned2011-04-20T06:37:57Zen
dc.date.available2011-04-20T06:37:57Zen
dc.date.issued2010-09en
dc.identifier.isbnISSN 0265-8003en
dc.identifier.urihttps://hdl.handle.net/10620/17195en
dc.identifier.urihttp://hdl.handle.net/10620/3218en
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
dc.subjectFinance -- Income (Salary and Wages)en
dc.subjectFinanceen
dc.subjectEmployment -- Labour Marketsen
dc.subjectEmploymenten
dc.titleEstimating the Wage Elasticity of Labour Supply to a Firm: What Evidence is There for Monopsony?en
dc.typeReports and technical papersen
dc.identifier.urlhttp://www.melbourneinstitute.com/hildaen
dc.identifier.surveyHILDAen
dc.description.institutionCentre for Economic Policy Researchen
dc.title.reportCentre for Economic Policy Research, Labour Economics Discussion Paperen
dc.identifier.rishttp://flosse.dss.gov.au//ris.php?id=3472en
dc.description.keywordsimperfect competitionen
dc.description.keywordslabour supply elasticityen
dc.description.keywordsmonopsony and separationen
dc.description.pages31en
local.identifier.id3472en
dc.identifier.edition7993en
dc.publisher.cityLondonen
dc.subject.dssLabour marketen
dc.subject.dssIncome, wealth and financesen
dc.subject.dssmaincategoryEmploymenten
dc.subject.dssmaincategoryFinanceen
dc.subject.dsssubcategoryIncome (Salary and Wages)en
dc.subject.dsssubcategoryLabour Marketsen
dc.subject.flosseIncome, wealth and financesen
dc.subject.flosseEmployment and unemploymenten
dc.relation.surveyHILDAen
dc.old.surveyvalueHILDAen
item.cerifentitytypePublications-
item.openairecristypehttp://purl.org/coar/resource_type/c_18cf-
item.grantfulltextnone-
item.openairetypeReports and technical papers-
item.fulltextNo Fulltext-
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