Insider power, outsider ineffectiveness and product market competition

evidence from Australia

Research output: Contribution to journalArticle


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.
Original languageEnglish
Pages (from-to)43-61
Number of pages19
JournalReview of applied economics
Issue number1
Publication statusPublished - 2006


  • insiders
  • outsiders
  • product market competition

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