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Insiders and Outsiders in Wage Formation: The Dutch Case

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  • Graafland, J J

Abstract

In this paper the relevance of the insider-outsider theory is investigated for the Netherlands. Estimation results of a macro wage equation show that the insider-outsider distinction has some empirical relevance, because the pay-off rate has a significant negative influence on wages. However, the extreme insider-outsider model is rejected, because wages are also found to be significantly negatively related to the rate of long-term unemployment.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 17 (1992)
Issue (Month): 4 ()
Pages: 583-602

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Handle: RePEc:spr:empeco:v:17:y:1992:i:4:p:583-602

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Cited by:
  1. Anabela Carneiro & Pedro Portugal, 2004. "Market Power, Dismissal Threat, and Rent Sharing: the Role of Insider and Outsider Forces in Wage Bargaining," CEF.UP Working Papers 0403, Universidade do Porto, Faculdade de Economia do Porto.
  2. Graafland, J.J., 1991. "From Phillips curve to wage curve," MPRA Paper 21077, University Library of Munich, Germany.
  3. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.

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