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Estimates are presented of the inverse elasticity of supply of nursing services to the individual hospital, a quantity which is a natural measure of employer market power. The estimates corresponding to employment changes taking place over one year are quite high (in the neighborhood of 0.79)...
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the other hand, we document a decline in monopsony power, as both the heterogeneity and the aggregate level of markdowns …
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, and a pure monopsony (one employer) reduces wages by 13 percent. A simulation shows that wages under pure monopsony could … be 47 percent lower, suggesting that employers do not use the extent of their monopsony power. Enforcing wage regulations …
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This paper brings together the modern literatures on monopsony power and labor unions by empirically examining the …
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