An accessible, balanced account of the insider-outsider theory of labor market activity.

This book provides an accessible, balanced account of the insider-outsider theory of labor market activity. It focuses on how "insiders" (experienced incumbent employees whose jobs are protected by various labor turnover costs) get market power, what they do with that power, and how their activities affect the "outsiders" (who are either unemployed or work in the informal sector). The book examines the effect of insiders' activities on wages, employment, and unemployment, discusses the associated policy implications, and relates the insider-outsider theory to other theories of labor market activity. The central part of the book consists of a series of previously published articles that have been edited to convey a single coherent account of a theory of unemployment that is growing in popularity. Chapters are preceded by overviews summarizing the main ideas and relating them to the book's underlying theme. The concluding chapter points out the predictions and policy implications of the theory. Lindbeck and Snower have taken care to make the main ideas accessible to a wide audience, without sacrificing analytical rigor."The insider-Outside Theory of Employment and Unemployment is concerned with both the causes and consequences of insider power. It emphasizes unemployment in chapters that survey modern unemployment theories and provide a formal comparison of the insider-outsider and efficiency-wage explanations of involuntary unemployment. Other topics include labor turnover costs (how they arise from insiders' activities and from job security legislation, and how they give rise to insider power), Union activities (how unions can amplify labor turnover costs, and provide insiders with newtools of rent-creation, such as strikes and work-to-rule actions), and the effect that insider activities can have in perpetuating the effects of temporary macroeconomic shocks. Assar Lindbeck is Professor of International Economics and Director of the Institute of International Economics at the University of Stockholm. Dennis J. Snower is Professor of Economics, Birbeck College, University of London.

Thirty classic and contemporary readings - from such writers as Kant, Hume, Schleiermacher, and Otto, to Ninian Smart, Mircea Eliade, Karen McCarthy-Brown, and Wendy Doniger.

The indigenous population of Deià has lived side by side with increasing numbers of foreigners over the past century, and what has occurred there over this period offers an example of how the population of one Mediterranean village has gained full advantage from the economic opportunities opened up by foreign investments, without losing the fabric of social relations, the meaning and values of their culture. Deià has been able to continue as a community with its own symbolic boundaries and identity, not in spite of the outsiders (some of whom are well-known literary personalities, artists and musicians) but because of their presence. This study shows how, under the impact of wars, migration, national politics, global economic and technological developments and especially tourism, the categories of Insider and Outsider are contracted and expanded, and reinterpreted to fit the constantly changing "reality" of the society; they assume different meanings at different times. The conflicts and resulting compromises over a hundred-year period have provided a sense of history that allows each group to define, develop, adapt and sustain their sense of belonging to their own communities.