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Insider Bargaining Power, Starting Wages and Involuntary Unemployment Author info | Abstract | Publisher info | Download info | Related research | Statistics Gottfries, Nils
Sjostrom, Tomas
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Recent studies of wage bargaining and unemployment have emphasized the distinction between insiders and outsiders, and that unions act in the interest of insiders. Yet it is typically assumed that insiders and recently hired outsiders are paid the same wage. We consider a model where the starting wage may differ from the insider wage, but incentive constraints associated with turnover affect the form of the contract. We examine under what conditions the starting wage is linked to the insider wage so that increased bargaining power of insiders raises the starting wage and reduces the hiring of outsiders. Copyright 2000 by The editors of the Scandinavian Journal of Economics.
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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics .
Volume (Year): 102 (2000)
Issue (Month): 4 (December)
Pages: 669-88
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Handle: RePEc:bla:scandj:v:102:y:2000:i:4:p:669-88Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0347-0520
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Paper Gottfries, N. & Sjostrom, Y., 1998.
"Insider Bargaining Power, Starting Wages, and Involuntary Unemployment ,"
Papers
1998-10, Uppsala - Working Paper Series.
Gottfries, Nils & Sjöström, Tomas, 1998.
"Insider Bargaining Power, Starting Wages, and Involuntary Unemployment ,"
Working Paper Series
1998:10, Uppsala University, Department of Economics.
[Downloadable!] References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Gottfries, Nils & Horn, Henrik, 1987.
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MacLeod, W. Bentley & Malcomson, James M., 1993.
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Macleod, W.B. & Malcomson, J.M., 1989.
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UFAE and IAE Working Papers
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Oswald, Andrew J., 1993.
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Lindbeck, Assar & Snower, Dennis J., 1987.
"Union activity, unemployment persistence and wage-employment ratchets ,"
European Economic Review ,
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Gottfries, Nils & Westermark, Andreas, 1998.
"Nominal wage contracts and the persistent effects of monetary policy ,"
European Economic Review ,
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Other versions: Oswald, Andrew J, 1986.
"Unemployment Insurance and Labor Contracts under Asymmetric Information: Theory and Facts ,"
American Economic Review ,
American Economic Association, vol. 76(3), pages 365-77, June.
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Mincer, Jacob & Higuchi, Yoshio, 1988.
"Wage structures and labor turnover in the United States and Japan ,"
Journal of the Japanese and International Economies ,
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Kuhn, Peter & Robert, Jacques, 1989.
"Seniority and Distribution in a Two-Worker Trade Union ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 104(3), pages 485-505, August.
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Other versions: MacLeod, W Bentley & Malcomson, James M, 1989.
"Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment ,"
Econometrica ,
Econometric Society, vol. 57(2), pages 447-80, March.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Carlsson, Mikael & Eriksson, Stefan & Gottfries, Nils, 2006.
"Testing Theories of Job Creation: Does Supply Create Its Own Demand? ,"
Working Paper Series
194, Sveriges Riksbank (Central Bank of Sweden).
[Downloadable!]
Other versions:
Mikael Carlsson & Stefan Eriksson & Nils Gottfries, 2006.
"Testing Theories of Job Creation: Does Supply Create Its Own Demand? ,"
IZA Discussion Papers
2024, Institute for the Study of Labor (IZA).
[Downloadable!] Mikael Carlsson & Stefan Eriksson & Nils Gottfries, 2006.
"Testing Theories of Job Creation: Does Supply Create Its Own Demand? ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!] Carlsson, Mikael & Eriksson, Stefan & Gottfries, Nils, 2006.
"Testing Theories of Job Creation: Does Supply Create Its Own Demand? ,"
Working Paper Series
2006:7, Uppsala University, Department of Economics, revised 23 Oct 2008.
[Downloadable!] Jonathan P. Thomas, 2000.
"Fair pay and a Wagebill Argument for Wage Rigidity and Excessive Employment Variability ,"
Labor and Demography
0004004, EconWPA.
[Downloadable!]
Other versions:
Jonathan P. Thomas, 2001.
"Fair pay and a Wagebill Argument for Wage Rigidity and Excessive Employment Variability ,"
Labor and Demography
0012001, EconWPA.
[Downloadable!] Jonathan P. Thomas, 1999.
"Fair Pay and a Wagebill Arguement for Wage Rigidity and Excessive Employment Variability ,"
Discussion Paper Series, Department of Economics
9919, Department of Economics, University of St. Andrews.
[Downloadable!] Jonathan Thomas, 2000.
"Fair Pay and a Wagebill Argument for Wage Rigidity and Excessive Employment Variability ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!] Michael Dobbie, 2004.
"Hysteresis and Insider-Outside Theory - A Literature Review ,"
Research Papers
0408, Macquarie University, Department of Economics.
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Martins, Pedro S. & Snell, Andy & Thomas, Jonathan P., 2009.
"Real and Nominal Wage Rigidity in a Model of Equal-Treatment Contracting ,"
IZA Discussion Papers
4346, Institute for the Study of Labor (IZA).
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Eriksson, Stefan, 2002.
"Imperfect information, wage formation, and the employability of the unemployed ,"
Working Paper Series
2002:17, IFAU - Institute for Labour Market Policy Evaluation.
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Diaz-Vazquez, Pilar & Snower, Dennis J., 2002.
"Can Insider Power Affect Employment? ,"
CEPR Discussion Papers
3472, C.E.P.R. Discussion Papers.
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Other versions:
Díaz-Vázquez, Pilar & Snower, Dennis, 2002.
"Can Insider Power Affect Employment? ,"
IZA Discussion Papers
506, Institute for the Study of Labor (IZA).
[Downloadable!] Pilar Díaz-Vázquez & Dennis J. Snower, 2003.
"Can Insider Power Affect Employment? ,"
German Economic Review ,
Blackwell Publishing, vol. 4(2), pages 139-150, 05.
[Downloadable!] (restricted) Andy Snell & Jonathan Thomas, 2006.
" Labor Contracts, Equal Treatment and Wage-Unemployment Dynamics ,"
CDMA Conference Paper Series
0603, Centre for Dynamic Macroeconomic Analysis.
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Other versions: Díaz-Vázquez, Pilar & Snower, Dennis, 2002.
"On-the Job Training and the Effects of Insider Power ,"
IZA Discussion Papers
586, Institute for the Study of Labor (IZA).
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