Dynamic Monopsony: Evidence from a French Establishment Panel

Fahti Fakhfakh, Felix R FitzRoy

    Research output: Contribution to journalArticlepeer-review

    6 Citations (Scopus)

    Abstract

    This paper uses a panel of about 6000 French establishments to test some implications of the modern theory of dynamic monopsony or upward-sloping labour supply curves for average firm wages. Panel estimates provide strong evidence of a much larger long-run employer size-wage effect (ESWE) than found previously, while controlling for worker quality and compensating differentials with lagged wages, and for profitability (rent-sharing). Employment expansion also has a positive effect on wages, providing further evidence for upward-sloping labour supply (as distinct from the effect of shocks in a perfectly competitive labour market).

    Original languageEnglish
    Pages (from-to)533-545
    Number of pages13
    JournalEconomica
    Volume73
    Issue number291
    DOIs
    Publication statusPublished - Aug 2006

    Keywords

    • EMPLOYER-SIZE
    • WAGE DIFFERENTIALS
    • MODELS

    Fingerprint

    Dive into the research topics of 'Dynamic Monopsony: Evidence from a French Establishment Panel'. Together they form a unique fingerprint.

    Cite this