costs influence insider wages and outsiders’ opportunities and how these costs affect employment and unemployment. We also … shocks. The second section deals with the insider-outsider theory in relation to two important economic institutions: unions …

. We solve (i) for the Markov perfect equilibria with no commitment, under the assumption that the union chooses wages each … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the no … and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …

-neutral firms bargain over wages and firing costs, average unemployment is unlikely to be affected by statutory firing costs … bargaining over firing costs, the presence of statutory firing costs reduces employment distortions associated with trade unions …

imperfectly competitive labour market where unions and firms bargain over wages and redundancy pay, the implicit contract result …

employees’ wages accounted for 42% of the gross domestic product, and the gross operating surplus for 47.2% of the GDP. In 2011 …, the share of the employees’ wages dropped to 40.6%, and the surplus rose to 50.8%. In other words, the crisis took its …

rates and the share of temporary contracts is established. The bargaining hypothesis that job security and wages are … hypothesis is contrasted with Rosen’s theory of equalising differences where security and wages are substitutes. The empirical … insecurity and wages significantly negative level effects are found for Germany with some evidence for those in the UK. There is …

UK. changes in perceived job security are a factor in determining the change in wages. …

Despite declining bargaining power, unions continue to generate a wage premium. Some feel collective bargaining has had … in the name of wage and employment flexibility, yet unions often work in tandem with employers for mutual gain based on … productivity growth. If this is where the premium originates, then firms and workers benefit. Without unions bargaining …