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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. …
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This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and the labor force. Using Solow growth and endogenous growth...
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We explore the implications of replacing current unemployment benefit (UB) systems by unemployment accounts (UA). Under the UA system, employed people would be required to make ongoing contributions to their unemployment accounts, and the balances in these accounts would then be available to...
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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 …
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provide employment vouchers for people of pensionable age. …
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