Diaz-Vazquez, Pilar; Snower, Dennis J. - C.E.P.R. Discussion Papers - 2002
Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … conventional answer. We show that, in the context of a stochastic model of the labor market, an increase in insider wages promotes … answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired …