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Efficiency Wages Versus Insiders and Outsiders

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Author Info
Lindbeck, Assar
Snower, Dennis J.

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Abstract

This paper compares two theories of involuntary unemployment: the efficiency-wage theory and the insider-outsider theory. We indicate that one of the central problems in providing microfoundations for the existence of involuntary unemployment is to explain why there is no underbidding, and we compare the two theories in this contex.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 133.

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Date of creation: Oct 1986
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Handle: RePEc:cpr:ceprdp:133

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Related research
Keywords: Efficiency Wages; Insiders; Outsiders; Underbidding; Unemployment;

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  1. Erica L. Groshen & Mark E. Schweitzer, 1996. "Macro- and microeconomic consequences of wage rigidity," Working Paper 9607, Federal Reserve Bank of Cleveland. [Downloadable!]
  2. Vesa Kanniainen & Timo Vesala, 2000. "Enterprise Formation and Labor Market Institutions," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  3. Hau, Harald, 2000. "Real Exchange Rate Volatility and Economic Openness: Theory and Evidence," CEPR Discussion Papers 2356, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Snower, Dennis J., 1999. "Causes of Changing Earnings Inequality," IZA Discussion Papers 29, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Dale T. Mortensen, 1988. "The Persistence and Indeterminacy of Unemployment in Search Equilibrium," Discussion Papers 810, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  6. Bradley Ewing & Phanindra Wunnava, 2002. "The Trade-Off Between Supervision Cost and Performance-Based Pay: Does it Matter?," Middlebury College Working Paper Series 0232, Middlebury College, Department of Economics. [Downloadable!]
  7. Patrick Artus & François Legendre & Pierre Morin, 1991. "Le partage implicite des profits et ses effets sur la productivité du travail," Annales d'Economie et de Statistique, ADRES, issue 22, pages 02, Avril-Jui. [Downloadable!]
  8. Lawrence H. Summers, 1989. "Relative Wages, Efficiency Wages, and Keynesian Unemployment," NBER Working Papers 2590, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Patrick Artus, 1988. "Le partage du profit: fondements microéconomiques et effets macroéconomiques," Annales d'Economie et de Statistique, ADRES, issue 10, pages 03, Avril-Jui. [Downloadable!]
  10. Bradley Ewing & Phanindra Wunnava, 2004. "The Trade-Off Between Supervision Cost and Performance Based Pay: Does Gender Matter?," Small Business Economics, Springer, vol. 23(5), pages 453-460, December. [Downloadable!] (restricted)
  11. Lorenz, Wilhelm & Wagner, Joachim, 1989. "Tätigkeit im erlernten Beruf, Betriebszugehörigkeitsdauer und Arbeitseinkommen : eine ökonometrische Untersuchung mit Individualdaten für das Bundesland Bremen und ein metallverarbeitendes Unterne," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 22(4), pages 568-575. [Downloadable!]
  12. Koller, Barbara & Gruber, Hannelore, 2001. "Ältere Arbeitnehmer im Betrieb und als Stellenbewerber aus der Sicht der Personalverantwortlichen (Older workers in the firm and as job candidates : the view of those responsible for personnel manage," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 34(4), pages 479-505. [Downloadable!]
  13. Snower, Dennis J., 1999. "Inequality of Earnings," CEPR Discussion Papers 2321, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  14. Maarten C.W. Janssen, 2006. "Microfoundations," Tinbergen Institute Discussion Papers 06-041/1, Tinbergen Institute. [Downloadable!]
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