Open AccessPosted Content
Insider Power in Wage Determination
David G. Blanchflower,David G. Blanchflower,David G. Blanchflower,Andrew J. Oswald,Andrew J. Oswald,Mario D. Garrett +5 more
TLDR
The authors argued that workers' bargaining power is influenced by conditions in the external labour market and used British establishment data from 1984 to show that pay depends upon a blend of insider pressure (including the employer's financial performance and oligopolistic position) and outsider pressure, including external wages and unemployment.Abstract:
The paper argues that wage determination is best seen as a kind of rent sharing in which workers' bargaining power is influenced by conditions in the external labour market. It uses British establishment data from 1984 to show that pay depends upon a blend of insider pressure (including the employer's financial performance and oligopolistic position) and outsider pressure (including external wages and unemployment). Lester's feasible 'range' of wages appears typically to be between 8% and 22% of pay. Estimates of the unemployment elasticity of the wage lie in a narrow band around -0.1.read more
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Bargaining structure, corporatism and macroeconomic performance
Lars Calmfors,John Driffill +1 more
TL;DR: For example, Calmfors and Driffill as mentioned in this paper show that the worst outcomes with respect to employment may well be found in systems with an intermediate degree of centralization (such as in Belgium and the Netherlands).
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The Effect of Implicit Contracts on the Movement of Wages Over the Business Cycle: Evidence from Micro Data
Paul Beaudry,John DiNardo +1 more
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Wages, Profits and Rent-Sharing
TL;DR: This paper used CPS data from 1964 to 1985 to test for the existence of rent-sharing in US tabor markets, using an unbalanced panel from the manufacturing sector, and random effects and fixed-effects specifications, finding that changes in wages are explained by movements in lagged levels of profitability and unemployment.
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Labour flexibility and wages: lessons from Spain
Samuel Bentolila,Juan J. Dolado +1 more
TL;DR: Benton and Dolado as mentioned in this paper showed that temporary jobs result in the emergence of a dual labour market, where the flexibility gained through temporary contracts hardly affects the core of permanent employees, and that wage growth actually rises when wage setting is in the hands of permanent insider workers.
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Insiders versus Outsiders
Assar Lindbeck,Dennis J. Snower +1 more
TL;DR: The insider-outsider theory as mentioned in this paper analyzes the behavior of economic agents in markets were some participants have more privileged positions than others, and provides an explanation of existence and persistence of unemployment, and helps account for different employment experiences in Europe and the United States.