Insider forces, asymmetries, and outsider ineffectiveness: Empirical evidence for norwegian industries 1966–87

Abstract

are significantly affected by industry performance. Insider effects are more important in expanding industries as compared to declining ones, and most responsive to insider variables in good times. Industry wages are significantly affected by unemployment, and the estimated unemployment coefficient is close to estimates obtained using time series data. There is no long-run wage resistance, and the main long-run determinants of industry wages are the outside wage and own profitability. 1