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 …

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 … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a …

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. The reason given is that an increase in insider wages gives rise to a …

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 the presence of on-the-job training, increases boom …

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. The reason given is that an increase in insider wages gives rise to a …

high wages), and if few good jobs are available, workers have little incentive to acquire skills. In this context, the …