Academic

ALEX TABARROK: Insiders, Outsiders and Unemployment. ?I am more worried, however, about the long t?

By Glenn Reynolds

ALEX TABARROK: Insiders, Outsiders and Unemployment. “I am more worried, however, about the long term consequences of creating a dual labor market in which insiders with government or government-connected jobs are highly paid and secure while outsiders face high unemployment rates, low wages and part-time work without a career path. . . . Moreover, once an economy is in the insider-outsider equilibrium it’s very difficult to get out because insiders fear that they will lose their privileges with a deregulated labor market and outsiders focus their political energy not on deregulating the labor market but on becoming insiders.”

Full post as published by Instapundit.com on February 27, 2010 (boomark / email).