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Abstract
This study aims to examine empirically the power of monopsony in the academic labor market, particularly in public universities. Upward sloping supply curve is indicative of monopsony and its power supply elasticity is suspected of demand for lecturers. The method used to estimate the supply equation for lecturer at four public universities in Indonesia is OLS model. A stratified sample is determined proportionally as much as 348 lecturers, by academic rank, gender and discipline. It is found that the supply elasticity is inelastic indicating that earnings lecturers are in non-competitive conditions. When employers face an inelastic supply curve, the marginal expenditure and average expenditure is very much different, which gave it the power to set wages, so it implies that the power of monopsony is big.
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References
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- Baskhar, V, Alan Manning and Ted To. (2004). Oligopsony and Monopsonistic Competition in Labor Market. Journal of Economic Perspectives, 16(2), 155-174. DOI: 10.1257/0895330027300.
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- Brummund, Peter. (2011). Variation in Monopsonistic Behavior AcrossEstablishments: Evidence from the Indonesian LaborMarket, Job Market Paper.
- Ehrenberg, Ronald G, (2003). Studying Ourselves: The Academic Labor Market. Journal of Labor Economics, 21(2), 267-287. DOI: 10.3386/w8965
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- Hallock, Kevin F. (1995). Seniority and Monopsony in the Academic Labor Market: Comment. The American Economic Review, 85(03), 654-657. https://www.jstor.org/stable/2118195
- Hotchkiss, Julie L and Myriam Quispe-Agnoli. (2009). Employer Monopsony Power in The Labor Market for Undocumented Workers. Federal Reserve Bank of Atlanta Working Paper No 2009-14.
- Manning, Alan. (2003). Monopsony in Motion. United Stade: Princeton University Press.
- Manning, Alan. (2003). The Real Thin Theory: Monopsony in Modern Labour Market, Centre for Economics Performance. NBER Working Paper, London School of Economics and Political Science.
- Ramadhan, R. R. & Setiadi, Y. (2019). Pengaruh Modal Fisik dan Sumber Daya Manusia terhadap Indeks Inklusif di Indonesia. Jurnal Ekonomi Pembangunan, 17(2): 109-124. DOI: https://doi.org/10.29259/jep.v17i2.9797.
- Ransom, Michael R. (1993). Seniority and Monopsony in Academic Labor Market. The American Economic Review, 83 (1), 221-233. https://www.jstor.org/stable/2117505.
- Ransom, Michael R. (1988). Monopsony and Sex Diffrentials in the Academic Labor Market, Discussion Paper 88-9.
- Ransom, Michael R and David P. Sims. (2010). Estimating the Firm’s Labor Supply Curve in A “New Monopsony” Framework: School Teachers in Missouri. Journal of Labor Economics, 28(2), 331-355.
- Staiger, Douglas, Joanne Spetz and Ciaran Phibbs. (2010). Is There Monopsony in The Labor Market? EvidenceFrom A Natural Experiment. Journal of Labor Economics, 28(2), 211-236. DOI: 10.3386/w7258.
- Topel, Robert. (1991). Specific Capital, Mobility and wages: Wages Rise with Job Seniority. Journal of Political Economy, 99(1), 145-176. https://www.jstor.org/stable/2937716.
References
Ashenfelter, Orley. C, Henry Farber, & Michael R. Ransom. (2010). Labor Market Monopsony. Journal of Labor Economics, 28 (2), 203-210. DOI: 10.1086/653654
Baskhar, V, Alan Manning and Ted To. (2004). Oligopsony and Monopsonistic Competition in Labor Market. Journal of Economic Perspectives, 16(2), 155-174. DOI: 10.1257/0895330027300.
Boal, William. M and Michael R. Ransom. (1997). Monopsony in the Labor Market. Journal of Economic Literature, 35(1), 86-112. https://www.jstor.org/stable/2729694
Brummund, Peter. (2011). Variation in Monopsonistic Behavior AcrossEstablishments: Evidence from the Indonesian LaborMarket, Job Market Paper.
Ehrenberg, Ronald G, (2003). Studying Ourselves: The Academic Labor Market. Journal of Labor Economics, 21(2), 267-287. DOI: 10.3386/w8965
Elfindri, E. (2014). Keajaiban Ekonomi dan Bisnis. Jakarta: Penerbit Baduose Media.
Hallock, Kevin F. (1995). Seniority and Monopsony in the Academic Labor Market: Comment. The American Economic Review, 85(03), 654-657. https://www.jstor.org/stable/2118195
Hotchkiss, Julie L and Myriam Quispe-Agnoli. (2009). Employer Monopsony Power in The Labor Market for Undocumented Workers. Federal Reserve Bank of Atlanta Working Paper No 2009-14.
Manning, Alan. (2003). Monopsony in Motion. United Stade: Princeton University Press.
Manning, Alan. (2003). The Real Thin Theory: Monopsony in Modern Labour Market, Centre for Economics Performance. NBER Working Paper, London School of Economics and Political Science.
Ramadhan, R. R. & Setiadi, Y. (2019). Pengaruh Modal Fisik dan Sumber Daya Manusia terhadap Indeks Inklusif di Indonesia. Jurnal Ekonomi Pembangunan, 17(2): 109-124. DOI: https://doi.org/10.29259/jep.v17i2.9797.
Ransom, Michael R. (1993). Seniority and Monopsony in Academic Labor Market. The American Economic Review, 83 (1), 221-233. https://www.jstor.org/stable/2117505.
Ransom, Michael R. (1988). Monopsony and Sex Diffrentials in the Academic Labor Market, Discussion Paper 88-9.
Ransom, Michael R and David P. Sims. (2010). Estimating the Firm’s Labor Supply Curve in A “New Monopsony” Framework: School Teachers in Missouri. Journal of Labor Economics, 28(2), 331-355.
Staiger, Douglas, Joanne Spetz and Ciaran Phibbs. (2010). Is There Monopsony in The Labor Market? EvidenceFrom A Natural Experiment. Journal of Labor Economics, 28(2), 211-236. DOI: 10.3386/w7258.
Topel, Robert. (1991). Specific Capital, Mobility and wages: Wages Rise with Job Seniority. Journal of Political Economy, 99(1), 145-176. https://www.jstor.org/stable/2937716.