Insider Power, Outsider Ineffectiveness and Product Market Competition: Evidence from Australia

Insider-outsider theories have been advanced to explain a range of phenomena, principally the persistence of unemployment. This paper uses data from the Australian Workplace Industrial Relations Survey 1995, and regional labour force survey data, to test this model. The paper also examines how the extent of product market competition faced by a firm influences the ability of insiders to ignore outsiders in wage setting. The paper finds provisional support for the insider-outsider distinction, and for the idea that insider power is enhanced when product market competition is weak.


Issue Date:
2006
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/50280
Published in:
Review of Applied Economics, Volume 02, Number 1
Page range:
43-61
Total Pages:
19
JEL Codes:
J3; J4; J6




 Record created 2017-04-01, last modified 2017-08-25

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