In the insider-outsider theory:
A) insiders are workers who retain employment during recession.
B) insiders are managers who have more information about their firms' performance than outsiders.
C) insiders are "principals" and outsiders are "agents."
D) outsiders are foreigners.

Question

Quizplus · Accepted Answer

Insiders in the insider-outsider theory are workers who have established job security and often receive higher wages and better benefits than outsiders. During a recession, these workers are more likely to retain their employment while outsiders, who lack job security and are often paid lower wages, are more likely to experience job loss.

In the Insider-Outsider Theory