Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired … firing in recessions, while leaving hiring in booms unchanged. Thereby insider power reduces average employment. …

to increases in R&D, patenting, IT and TFP within firms; and second it reallocated employment between firms towards more … in employment, profits, prices and the skill share. By contrast, import competition from developed countries had no …