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Insider Power, Outsider Ineffectiveness and Product Market Competition: Evidence from Australia

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Author Info
Dobbie, Michael
Abstract

Insider-outsider theories have been advanced to explain a range of phenomena, principally the persistence of unemployment. This paper uses data from the Australian Workplace Industrial Relations Survey 1995, and regional labour force survey data, to test this model. The paper also examines how the extent of product market competition faced by a firm influences the ability of insiders to ignore outsiders in wage setting. The paper finds provisional support for the insider-outsider distinction, and for the idea that insider power is enhanced when product market competition is weak.

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File URL: http://purl.umn.edu/50280
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Publisher Info
Article provided by Review of Applied Economics in its journal Review of Applied Economics.

Volume (Year): 2 (2006)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:ags:reapec:50280

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Web page: http://www.lincoln.ac.nz/story11874.html

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Related research
Keywords: insiders; outsiders; product market competition; Demand and Price Analysis; J3; J4; J6;

References listed on IDEAS
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  1. Blanchard, Olivier J. & Summers, Lawrence H., 1987. "Hysteresis in unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 288-295. [Downloadable!] (restricted)
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  2. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter. [Downloadable!] (restricted)
  3. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," Working papers 427, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
  4. Nickell, S & Vainiomaki, J & Wadhwani, S, 1994. "Wages and Product Market Power," Economica, London School of Economics and Political Science, vol. 61(244), pages 457-73, November. [Downloadable!] (restricted)
  5. Kennedy, Steven & Borland, Jeff, 2000. "A Wage Curve for Australia?," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 774-803, October.
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  6. Wooden, Mark & Bora, Bijit, 1999. "Workplace Characteristics and Their Effects on Wages: Australian Evidence," Australian Economic Papers, Blackwell Publishing, vol. 38(3), pages 276-89, September. [Downloadable!] (restricted)
  7. Paul Flatau & Philip E. T. Lewis & Allison Rushton, 1991. "The Macroeconomic Consequences of Long-Term Unemployment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(4), pages 48-56. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.

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