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Unemployment Persistence and Insider-Outsider Forces in Wage Determination

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  • Bertil Holmlund

Abstract

The rise in European unemployment has inspired much new research on the causes and mechanisms of unemployment, analogous to the interest devoted to unemployment in the 1930s. The new research has to a large extent focused on wage-setting behaviour, as is revealed by the rapid growth of theoretical and empirical work on models of wage bargaining, insider-outsider relationships, and efficiency wages. A common theme in this new work is a desire to provide satisfactory microeconomic foundations for the existence and persistence of involuntary unemployment.This paper offers a survey of recent research on unemployment persistence and insider-outsider forces in wage determination. It begins in Section II with an overview of major themes in the theoretical work on unemployment. Section III reviews results from a number of recent empirical studies inspired by these new theories. Section IV concludes with a discussion of directions for future research ... La montée du chômage en Europe a suscité de nombreuses nouvelles pistes de recherche sur les causes et les mécanismes du chômage, de manière analogue à l'intérêt porté sur le chômage des années 30. Les analyses se sont dans une large mesure centrées sur la formation des salaires, comme en témoigne le développement rapide des travaux théoriques et appliqués sur le modèle de négociation, les relations "insider-outsider" et le salaire d'efficience. Un thème commun à ces nouveaux travaux est le désir d'apporter des fondations macro-économiques solides à l'existence et la persistence du chômage involontaire.Le papier présente un panorama des recherches récentes sur la persistence du chômage et les influences "insider-outsider" dans la détermination des salaires. Section II donne un aperçu des principaux thèmes de la recherche théorique sur le chômage. Section III fournit une revue des résultats d'études empiriques récentes inspirées par ces théories nouvelles. Section IV conclut avec ...

Suggested Citation

  • Bertil Holmlund, 1991. "Unemployment Persistence and Insider-Outsider Forces in Wage Determination," OECD Economics Department Working Papers 92, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:92-en
    DOI: 10.1787/883783738373
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    Cited by:

    1. Franz, Wolfgang & Smolny, Werner, 1993. "Sectoral wage and price formation and working time in Germany: An econometric analysis," Discussion Papers 5, University of Konstanz, Center for International Labor Economics (CILE).
    2. Fernando Martins & Pedro Portugal, 2014. "Wage adjustments during a severe economic downturn," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    3. Jørgen Elmeskov, 1993. "High and Persistent Unemployment: Assessment of the Problem and Its Causes," OECD Economics Department Working Papers 132, OECD Publishing.

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