Economics Professor’s Research Sheds New Light on Old Assumptions

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Veronika Dolar, PhD

We spoke with Veronika Dolar, PhD, an associate professor in Dyson College of Arts and Sciences’ Economics Department, about her research, its unexpected findings, and pedagogy.

Her recent research interests include work in labor economics, specifically minimum wage policy, and health economics, specifically hospital monopolization.

Why is this research important and how does it affect your pedagogical methods?

My research on the minimum wage emerged from the realization that the way this topic is traditionally taught in economics courses is quite restrictive. Many textbooks focus exclusively on competitive labor markets, where raising the minimum wage is associated with unemployment. However, when different assumptions are applied—such as in a monopsonistic labor market—the outcomes are vastly different.

This inspired me to explore the topic in greater depth, both in my research and pedagogy, to provide students with a more holistic view of minimum wage policies. It serves as a perfect case study for teaching critical thinking in economics: challenging assumptions, applying theory judiciously, exploring its limitations, and understanding the empirical challenges of working with data in social sciences. This deeper engagement with the topic also contributed to my publishing opportunity with Cengage, where I completely revised and rewrote two introductory textbooks - in microeconomics and macroeconomics - to reflect these nuanced perspectives.

Similarly, I apply critical thinking skills to the healthcare market, focusing on hospital monopolization. I explore and investigate how consolidation in healthcare markets affects access, affordability, and quality of care. With healthcare monopolies becoming more common, this work is crucial for informing policies that promote competition and protect consumer interests. In the classroom, I guide students to explore data and analyze market concentration and its consequences on healthcare costs and prices, giving them practical experience in applying economic analysis to pressing issues.

In the healthcare sector, one unexpected discovery was that mergers and hospital consolidations, often promoted as efficiency measures, can lead to higher prices without corresponding improvements in care quality, especially for underserved populations.

What surprising findings have been revealed?

In my research on the minimum wage, I found that moderate increases do not always result in job losses, as predicted by traditional models. In fact, in certain contexts, they can improve worker satisfaction and reduce turnover. These findings emphasize the importance of questioning assumptions in economic theory and understanding the diversity of real-world labor markets.

In the healthcare sector, one unexpected discovery was that mergers and hospital consolidations, often promoted as efficiency measures, can lead to higher prices without corresponding improvements in care quality, especially for underserved populations. This challenges the assumption that larger systems always offer better services.

How does your research inform your teaching?

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My research is deeply embedded in my teaching practices. I use the minimum wage debate to show students how to approach complex economic topics critically — examining assumptions, using data meaningfully, and recognizing theoretical limitations. These discussions encourage students to see economics not just as a set of abstract models but as a dynamic discipline that intersects with real-world issues.

I also design in-depth assignments around these themes, where students engage with theoretical and empirical research. Similarly, in health economics, I incorporate discussions about hospital monopolization and market concentration, giving students the tools to analyze healthcare costs and prices critically. These real-world applications help students connect economic theories to policy issues that directly impact society.