costs influence insider wages and outsiders? opportunities and how these costs affect employment and unemployment. We also … address the more complex, and open, question of how employment and unemployment move through time, in response to labor market …

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 … firming in recessions, while leaving hiring in booms unchanged. Thereby insider power reduces average employment. …

provide employment vouchers for people of pensionable age. …

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 the presence of on-the-job training, increases boom …-time employment. Thus on-the-job training can make insider wage hikes less detrimental to average employment (over booms and …

to all low-wage earners regardless of their employment history and are of limitless duration. Our analysis indicates that … workers are (i.e. the more their wages rise with employment duration), the more effective will unemployment vouchers be …

people?s employment incentives and could achieve reductions in unemployment without reducing the level of support to the …