Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a … counterveiling fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this …

labor costs. Our analysis indicates that when wages and prices are flexible, product demand policies have no significant …

analysis indicates how the changes can segment the labour market into an expanding sector of restructured firms where wages are … rising, a contracting sector of traditional firms where wages are relatively stagnant, and an expanding pool of the …; the widening dispersion of wages within occupational, educational, and job tenure groups in the United Kingdom and the …

unwilling to find jobs even though they are prepared to work for less than the prevailing wages of incumbent workers ("insiders … wages of the underbidders. The resulting labor turnover costs create economic rent which the insiders tap in wage …