
Suppose a wife follows her engineer husband to Muscatine, Iowa, so he can advance his earnings. She is a certified teacher, but the problem is there's only one public school in Muscatine. The next schools are 50 miles away. Will she take a job at the local school if she wants to work?
I argue that she'll accept a lower wage because the local school is a monopsony. If a union is present, then the market structure will be a bilateral monopoly.
I argue that the two powers will balance each other and resulting collective bargaining negotiations will result in a win-win.












