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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.

Suggested Citation

  • Graafland, J J, 1992. "Insiders and Outsiders in Wage Formation: The Dutch Case," Empirical Economics, Springer, vol. 17(4), pages 583-602.
    • Handle: RePEc:spr:empeco:v:17:y:1992:i:4:p:583-602
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    Cited by:

    1. Rocus van Opstal, 2006. "Charting choices 2008-2011: economic effects of eight election platforms," CPB Document 139.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    3. 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.
    4. Graafland, J.J., 1991. "From Phillips curve to wage curve," MPRA Paper 21077, University Library of Munich, Germany.
    5. Pierre Koning & Dinand Webbink & Nicholas Martin, 2015. "The effect of education on smoking behavior: new evidence from smoking durations of a sample of twins," Empirical Economics, Springer, vol. 48(4), pages 1479-1497, June.
    6. Antonio Rodriguez-Gil, 2018. "Hysteresis and labour market institutions. Evidence from the UK and the Netherlands," Empirical Economics, Springer, vol. 55(4), pages 1985-2025, December.

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