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the bargaining process itself. This approach leads to a new theory of wage determination. …
Persistent link: https://www.econbiz.de/10011412236
One of the predictions of the insider-outsider theory is that wages will be higher in sectors (firms) with high labor …
Persistent link: https://www.econbiz.de/10003314671
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 employees (entrants) receive their reservation wages....
Persistent link: https://www.econbiz.de/10011411604
This article is an idiosyncratic survey of the insider-outsider theory, describing the vision underlying the theory … been dead-ends and red herrings in past research. The first section deals with the theory, concerning how labor turnover … shocks. The second section deals with the insider-outsider theory in relation to two important economic institutions: unions …
Persistent link: https://www.econbiz.de/10011412195
Suppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How will employment be affected? In addressing this question, we focus on the role of on-the-job training. We show that an insider wage hike reduces recession-time employment but, in...
Persistent link: https://www.econbiz.de/10011413583
Persistent link: https://www.econbiz.de/10001799644
Persistent link: https://www.econbiz.de/10001776085
We examine theoretically and empirically the properties of the equilibrium wage function and its implications for policy. Our emphasis is on how the researcher approaches economic and policy questions when there is labor market heterogeneity leading to a set of wages. We focus on the application...
Persistent link: https://www.econbiz.de/10008688722
This paper analyzes the impact of workplace characteristics on individual wages based on a unique cross-section matched employer-employee dataset for the Israeli private manufacturing sector in 1995; especially, we examine the effects of the interaction between rent-sharing and wages on the gender...
Persistent link: https://www.econbiz.de/10003384905
In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …
Persistent link: https://www.econbiz.de/10011401500