Please use this identifier to cite or link to this item: https://hdl.handle.net/10620/17293
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dc.contributor.authorKatic, Pen
dc.contributor.authorBooth, Aen
dc.date.accessioned2019-04-13T03:34:00Zen
dc.date.accessioned2011-04-21T01:28:54Zen
dc.date.available2011-04-21T01:28:54Zen
dc.date.issued2009-12en
dc.identifier.isbnISBN: 978-1-921693-07-6en
dc.identifier.urihttps://hdl.handle.net/10620/17293en
dc.identifier.urihttp://hdl.handle.net/10620/3247en
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 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 do this, following the modelling strategy of Manning (2003), and 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 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.subjectEmploymenten
dc.subjectEmployment -- Labour force supplyen
dc.subjectFinanceen
dc.subjectFinance -- Income (Salary and Wages)en
dc.titleEstimating the Wage Elasticity of Labour Supply to a Firm: Is There Monopsony Down-under?en
dc.typeReports and technical papersen
dc.identifier.urlhttp://www.melbourneinstitute.com/hildaen
dc.identifier.surveyHILDAen
dc.description.urlhttp://www.melbourneinstitute.com/hildaen
dc.description.institutionCentre for Economic Policy Research, the Australian National Universityen
dc.title.reportCentre for Economic Policy Research, the Australian National University, Discussion Paperen
dc.identifier.rishttp://flosse.dss.gov.au//ris.php?id=3503en
dc.description.keywordsmonopsonyen
dc.description.keywordslabour suuply elasticityen
dc.description.keywordsimperfect competitionen
dc.description.keywordsseparationen
dc.description.pages27en
local.identifier.id3503en
dc.identifier.edition626en
dc.subject.dssLabour marketen
dc.subject.dssIncome, wealth and financesen
dc.subject.dssmaincategoryEmploymenten
dc.subject.dssmaincategoryFinanceen
dc.subject.dsssubcategoryLabour force supplyen
dc.subject.dsssubcategoryIncome (Salary and Wages)en
dc.subject.flosseEmployment and unemploymenten
dc.subject.flosseIncome, wealth and financesen
dc.relation.surveyHILDAen
dc.old.surveyvalueHILDAen
item.grantfulltextnone-
item.fulltextNo Fulltext-
item.openairecristypehttp://purl.org/coar/resource_type/c_18cf-
item.openairetypeReports and technical papers-
item.cerifentitytypePublications-
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