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Seniority and Monopsony in the Academic Labor Market

Michael R. Ransom

American Economic Review 1993

Workers with high seniority usually have higher wages than workers with low seniority and the same total labor-marke t experience. In contrast, the results of this paper indicate that higher seniority is associated with lower salaries for university professors. The author documents this finding for national surveys a nd individual institutions and explains it as due to monopsonistic discrimination by employers. Copyright 1993 by American Economic Association.

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