No abstract

Dube acknowledges support from the Washington Center for Equitable Growth. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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We estimate the impact of the firm component of hourly wage variation on separations from matched Oregon employer-employee data. We use both firm fixed effects estimated from a wage equation as well as a matched IV event study around employment transitions between firms. Separations decline with firm wage policies: the implied firm-level labor supply elasticities are around 4, consistent with recent quasiexperimental evidence, but 3 to 4 times larger than existing estimates using individual wages. We find that monopsonistic competition is pervasive, even in low-wage, high turnover sectors, but with little heterogeneity by labor market concentration.* Dube acknowledges support from the Washington Center for Equitable Growth. An Online Appendix can be found at http://jhr.uwpress.org/. This paper uses confidential data from Oregon's Unemployment Insurance payroll records, which we obtained as part of a data sharing agreement with the state. To enquire about access, contact the Oregon Employment Department (OED, phone number: 503-947-1394). We gratefully acknowledge the generous help given by the staff at OED.

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