Koskela, Erkki (contributor); Poutvaara, Panu (contributor) - 2008
-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation … affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost …-skilled workers. Increasing wage tax progression of lowskilled workers decreases the wage rate and increases the labour demand of low …