production. Employment and wages diverged considerably within the German automobile industry. Relative to skilled workers, the … foreign direct investment in Central Europe may have helped the relatively favourable employment and earnings record of the …

Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a …