Insider Power, Wage Discrimination and Fairness
Bibliographic Data
| ID | 9717417 |
|---|---|
| Authors | Ernst Fehr (0000-0001-6325-7821), Georg Kirchsteiger |
| Year | 1994 |
| Volume | 104 |
| Issue | 424 |
| Pages | 571 |
| Publication date | 1994-05-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.2307/2234632 |
| OpenAlex | W1516166540 |
| Language | EN |
| Citations received | 3 |
The exercise of insider power is frequently considered as a major cause of involuntary unemployment. We show that under standard assumptions - insiders are selfish and they need not fear the loss of their job - insider power does not guarantee unemployment but the introduction of a market clearing two-tier system. Yet, while insider power is a common phenomen two-tier systems are rarely observed. We show that if outsiders exhibit a preference for fairness the presence of insider powergives rise to an efficiency wage effect which may prevent the introduction of market clearing two-tier systems. It is, thus, the combination of insider power and workers' preferences for fairness which causes unemployment
Bargaining power · Clearing · Economics · Efficiency wage · Insider · Labour economics · Macroeconomics · Market clearing · Market power · Microeconomics · Power (physics · Unemployment · Wage · Economic Policies and Impacts · Finance · Labor market dynamics and wage inequality · Labor Movements and Unions
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,12 |
| Citation span | 2000 - 2004 (5) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |