Efficiency wages, insiders-outsiders and wages determination: theories and evidence

The article discusses alternative explanations for the rigidity of real wages in thepresence of involuntary unemployment. It is argued that real wage rigidity can be viewed asthe result of two factors: (i) trade unions’ bargaining power, in the form of insider power;and (ii) the deliberate action of...

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Detalles Bibliográficos
Autor: Carneiro, Francisco G.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1997
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1169
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1169
Access Level:acceso abierto
Palabra clave:Demanda por trabalho
oferta de trabalho
salários
Labour demand
labor supply
wages
Descripción
Sumario:The article discusses alternative explanations for the rigidity of real wages in thepresence of involuntary unemployment. It is argued that real wage rigidity can be viewed asthe result of two factors: (i) trade unions’ bargaining power, in the form of insider power;and (ii) the deliberate action of firms which try to avoid the costs associated with labourturnover. The article also presents recent empirical evidence on the importance of insiderfactors in the process of wage determination for a number of countries. JEL Classification: J20; J31.