Carneiro, Anabela; Portugal, Pedro - Institute for the Study of Labor (IZA) - 2006
One of the predictions of the insider-outsider theory is that wages will be higher in sectors (firms) with high labor … power tend to pay higher wages. In particular, we found that the threat of dismissal acts to weaken insiders’ bargaining … power and, consequently, to restrain their wage claims. Moreover, the results also showed that real wages in Portugal are …