Abstract
In this paper the relevance of the insider-outsider theory is investigated for the Netherlands. Estimation results of a macro wage equation show that the insider-outsider distinction has some empirical relevance, because the lay-off rate has a significant negative influence on wages. However, the extreme insider-outsider model is rejected, because wages are also found to be significantly negatively related to the rate of long-term unemployment.
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Graafland, J.J. Insiders and outsiders in wage formation: The dutch case. Empirical Economics 17, 583–602 (1992). https://doi.org/10.1007/BF01205397
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DOI: https://doi.org/10.1007/BF01205397