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Insider Bargaining Power, Starting Wages, and Involuntary Unemployment Author info | Abstract | Publisher info | Download info | Related research | Statistics Gottfries, N.
Sjostrom, Y.
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Recent analyses of wage bargaining has emphasized the distinction between insiders and outsiders, yet one typically assumes that insiders and recently hired outsiders are paid the same wage. We consider a model where the starting wage for outsiders may be lower that 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 hiring of outsiders.
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Paper provided by Uppsala - Working Paper Series in its series Papers with number
1998-10.
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Length: 26 pages
Date of creation: 1998Date of revision:
Handle: RePEc:fth:uppaal:1998-10Contact details of provider: Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN. Phone: + 46 18 471 25 00 Fax: + 46 18 471 14 78 Email: Web page: http://www.nek.uu.se/ More information through EDIRC
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Keywords: WAGES ; BARGAINING ; UNEMPLOYMENT ; Other versions of this item:
Find related papers by JEL classification: J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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.:
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Gottfries, Nils & Westermark, Andreas, 1998.
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"Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment ,"
Econometrica ,
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[Downloadable!] (restricted)
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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.
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Working Paper Series
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[Downloadable!]
Other versions:
Mikael Carlsson & Stefan Eriksson & Nils Gottfries, 2006.
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"Can Insider Power Affect Employment? ,"
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Díaz-Vázquez, Pilar & Snower, Dennis, 2002.
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IZA Discussion Papers
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[Downloadable!] (restricted) 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
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[Downloadable!] Jonathan P. Thomas, 1999.
"Fair Pay and a Wagebill Arguement for Wage Rigidity and Excessive Employment Variability ,"
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" Labor Contracts, Equal Treatment and Wage-Unemployment Dynamics ,"
CDMA Conference Paper Series
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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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Michael Dobbie, 2004.
"Hysteresis and Insider-Outside Theory - A Literature Review ,"
Research Papers
0408, Macquarie University, Department of Economics.
[Downloadable!]
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