The paper presents a theory of involuntary unemployment which explains why the unemployed workers ("outsiders") are unable or unwilling to find jobs even though they are prepared to work for less than the prevailing wages of incumbent workers ("insiders"). The outsiders do not underbid the insiders since, were they to do so, the insiders would withdraw cooperation from them and make their work unpleasant (i.e. "harass" them), thereby reducing the...
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DETALHES
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1987/02/01
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Documento de trabalho departamental
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DRD257
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1
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1
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2013/06/06
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Disclosed
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Cooperation, harassment, and involuntary unemployment : an insider - outsider approach
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marginal product of labor
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