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Insider-Outsider Effects in Wage Formation: An Empirical Survey

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  • Lever, Marcel H C

Abstract

The paper provides a review of empirical work on insider-outsider and duration effects in wage formation. It presents a theoretical model to investigate the relationship between previous employment and the wage rate. The impact of unemployment and long-term unemployment is considered. Empirical results show that the effect of previous employment on the wage rate is generally insignificant. Both short-term and long-term unemployment appear to have a significant negative impact. Micro-studies reveal that both firm-specific and aggregate variables play a role in wage determination. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Lever, Marcel H C, 1995. "Insider-Outsider Effects in Wage Formation: An Empirical Survey," Bulletin of Economic Research, Wiley Blackwell, vol. 47(4), pages 257-274, October.
    • Handle: RePEc:bla:buecrs:v:47:y:1995:i:4:p:257-74
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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. Carneiro, Francisco Galrão & Henley, Andrew, 2000. "Real Wages and the Lucas Critique: Can the Government Tax Policy Influence Wage Growth in Brazil?," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 20(1), May.
    3. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    4. Lever, Marcel H. C. & van Werkhooven, Jolanda M., 1996. "Insider power, market power, firm size and wages: Evidence from Dutch manufacturing industries," Labour Economics, Elsevier, vol. 3(1), pages 93-107, August.
    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. Gábor R., István, 1997. "Belső versus foglalkozási munkaerőpiac - a posztszocialista átalakulás elhanyagolt dimenziója [Internal counter-employment labour market - a neglected dimension of post-socialist transformation]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 457-473.
    7. Carneiro, Francisco G., 1998. "Productivity effects in brazilian wage determination," World Development, Elsevier, vol. 26(1), pages 139-153, January.

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