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The insider-outsider theory: some evidence of Australia

Author

Listed:
  • Michael Dobbie

    (Macquarie University)

Abstract

This paper uses Australian micro-data to test the insider-outsider model. As part of this, the paper also examines whether the distinction between insiders and outsiders has more relevance for males or females. Provisional support for the theory is found. The paper finds that males have more insider power than females. It is argued that this represents an indirect test in support of Lindbeck and Snowers’s (1988) turnover cost version of the theory. The paper pays particular attention to specification and estimation problems associated with the research.

Suggested Citation

  • Michael Dobbie, 2005. "The insider-outsider theory: some evidence of Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(2), pages 181-201, June.
    • Handle: RePEc:ozl:journl:v:8:y:2005:i:2:p:181-201
    as

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    References listed on IDEAS

    as
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    6. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    7. Winter-Ebmer, Rudolf, 1996. "Wage curve, unemployment duration and compensating differentials," Labour Economics, Elsevier, vol. 3(4), pages 425-434, December.
    8. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
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    11. Mark Wooden & Bijit Bora, 1999. "Workplace Characteristics and Their Effects on Wages: Australian Evidence," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 276-289, September.
    12. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wages; Compensation; and Labor Costs: General; Particular Labor Markets: General; Mobility; Unemployment; and Vacancies: General;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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