Industrierenten und Lohnsetzungsverhalten : gibt es Indizien für die Insider-Outsider Hypothese? (Industry rents and wage settings behaviour * is there evidence to support the insider-outsider hypothesis?)
"The insider-outsider theory is one of the approaches with which the persistence of unemployment can be accounted for. The central hypothesis says that the insiders, in other words the 'job holders', drive the wage level above the market-clearing level, thus creating a barrier that prevents new hirings. Due to the existence of hiring costs, e.g. search costs, training costs and the costs for lay-offs e.g. redundancy payments, insiders possess market power. According to the insider-outsider theory, insiders exploit this market power in order to expropriate rents. This paper first examines whether there is evidence of the existence of such rents. Following more recent articles in the literature, we measure the size and temporal course of the rents on the basis of inter-industry wage differentials. These are estimated and analysed using data from the IAB employment sample. Furthermore we look into the hypothesis derived from the insider-outsider theory which says that industries with comparatively high rents demonstrate a high average employment duration. Finally we test a specific wage formation pattern that is expected in the case of insider behaviour (comparatively high wage increases during periods of economic recovery). The results show that there is indeed some evidence that 'job holders' cream off rents to a certain extent. In the industries with high rents there are indications of overly high wage increases particularly during periods of expansion. However, the results of some of the estimates are only weakly statistically firm. Further research is therefore needed in order to substantiate (or refute) the empirical evidence of the insider-outsider hypothesis. " (Author's abstract, IAB-Doku) ((en))
Volume (Year): 38 (2005)
Issue (Month): 2/3 ()
|Contact details of provider:|| Postal: Regensburger Str. 104, D-90327 Nürnberg|
Web page: http://www.iab.de/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/labor/journal/12651?detailsPage=subscription|
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.:
- Dale T. Mortensen & Christopher A. Pissarides, 1994.
"Job Creation and Job Destruction in the Theory of Unemployment,"
Review of Economic Studies,
Oxford University Press, vol. 61(3), pages 397-415.
- Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 19 pages.
- Dale T. Mortensen & Christopher A. Pissarides, 1993. "Job Creation and Job Destruction in the Theory of Unemployment," CEP Discussion Papers dp0110, Centre for Economic Performance, LSE.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Wagner, Joachim, 1990. "An international comparison of sector wage differentials," Economics Letters, Elsevier, vol. 34(1), pages 93-97, September.
- Stephen Nickell, 2003. "Labour Market Institutions and Unemployment in OECD Countries," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(2), pages 13-26, October.
- Edin, Per-Anders & Zetterberg, Johnny, 1992. "Interindustry Wage Differentials: Evidence from Sweden and a Comparison with the United States," American Economic Review, American Economic Association, vol. 82(5), pages 1341-49, December.
- Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, June.
- Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
- Robert Gibbons & Lawrence Katz, 1992.
"Does Unmeasured Ability Explain Inter-Industry Wage Differentials?,"
Review of Economic Studies,
Oxford University Press, vol. 59(3), pages 515-535.
- Robert Gibbons & Lawrence F. Katz, 1989. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc.
- Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
- Schlicht, Ekkehart, 1978. "Labour Turnover, Wage Structure, and Natural Unemployment," Munich Reprints in Economics 1255, University of Munich, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:iab:iabzaf:v:2005:i:2/3:p:147-164. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek)
If references are entirely missing, you can add them using this form.