NBER Working Papers and Publications
|July 1999||Is There Monopsony in the Labor Market? Evidence from a Natural Experiment|
with Douglas Staiger, Ciaran Phibbs: w7258
A variety of recent theoretical and empirical advances have renewed interest in monopsonistic models of the labor market. However, there is little direct empirical support for these models, even in labor markets that are textbook examples of monopsony. We use an exogenous change in wages at Veterans Affairs hospitals as a natural experiment to investigate the extent of monopsony in the nurse labor market. In contrast to much of the prior literature, we estimate that labor supply to individual hospitals is quite inelastic, with short-run elasticity around 0.1. We also find that non-VA hospitals responded to the VA wage change by changing their own wages.
Published: Douglas O. Staiger & Joanne Spetz & Ciaran S. Phibbs, 2010.
"Is There Monopsony in the Labor Market? Evidence from a Natural Experiment,"
Journal of Labor Economics,
University of Chicago Press, vol. 28(2), pages 211-236, 04.
citation courtesy of
|January 1999||Managed Care and Medical Technology Growth|
with Laurence Baker: w6894
Many questions about technology growth and development in health care call for a broad-based characterization of technology availability. In this paper, we explore the possibility of producing aggregated estimates of technology availability by constructing an index of technology availability in hospitals. Our index is based on the number of services provided by a hospital, weighted by how rare those services are. We use the index to examine the relationship between managed care and technology availability in hospitals. We find that managed care may have slowed technology growth in the mid 1980s, but in the early 1990s we find little evidence that technology growth in areas with high-HMO market share is any slower than growth in lower market share areas. To the extent that our index cap...
|Managed Care and Medical Technology Growth|
with Laurence Baker
in Frontiers in Health Policy Research, volume 2, Alan M. Garber, editor