Abstract
Solow’s paper is concerned with explaining persistent unemployment in a fluctuating economy where labour is heterogeneous and employment decisions are linked through time. This surely is an important problem. It is also about time that we start thinking about the labour market as consisting not only of n identical clones but of individuals with different skills, education and experience. Can the skilled or the experienced keep the unskilled from getting jobs and would it be in their interest to do so? The latter question is easier to answer and the argument can be laid out in terms of a simple diagram (Fig. 1).
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© 1986 The Scandinavian Journal of Economics
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Kierzkowski, H., Snower, D.J. (1986). Comment on Robert M. Solow, “Insiders and Outsiders in Wage Determination”. In: Calmfors, L., Horn, H. (eds) Trade Unions, Wage Formation and Macroeconomic Stability. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08596-5_19
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