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We analyze the following questions associated with flexible outsourcing under partlyimperfect dual domestic labour … sharing influence flexibleoutsourcing? What is the relationship between outsourcing cost, profit sharing and wages?We show …
Persistent link: https://www.econbiz.de/10009418921
This paper pursues three aims. First, we provide a review of current theoretical advanceswhich pertain to the relationship between trade, FDI and labor markets. We do so under thefollowing (not mutually exclusive) headings: (1) slicing-up the value added chain and the turnto a task-based...
Persistent link: https://www.econbiz.de/10009360562
We combine profit sharing and outsourcing, if the wage for worker is decided by a labor unionto analyze how does the … implementation of profit sharing affect individual effort and thebargained wage and thus outsourcing? We find that profit sharing and …
Persistent link: https://www.econbiz.de/10009360604
We present a dynamic model where the probability of outsourcing production is increasing inthe firm’s expectation of …
Persistent link: https://www.econbiz.de/10009360607
-skilled labor andperfect competition in high-skilled labor in the presence of outsourcing? A higher degree oftax progression by …
Persistent link: https://www.econbiz.de/10009360617
abroad, and where outsourcing issubstitutable for domestic low-ability labor. Our results show that the incentives for … unemployment also constitutes an incentive to implement a tax on outsourcing.Without a direct instrument for taxing outsourcing …, the government may reduce the amount ofresources spent on outsourcing by increased provision of the public input good …
Persistent link: https://www.econbiz.de/10009360634
I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...
Persistent link: https://www.econbiz.de/10009320400
We analyze a firm that produces a final good from multiple intermediates that can each be sourced domestically or from a low-wage country. The model explicitly incorporates that sourcing decisions of intermediates are interdependent. Equilibrium predictions depend crucially on a key modeling...
Persistent link: https://www.econbiz.de/10009324256
We express a doubt on the conventional wisdom namely, of a positive relationship between wage and productivity, of a formal sector firm in a developing economy where the firm can either go for subcontracting to the informal sector to minimize wage cost along with apprehension of extra-legal cost...
Persistent link: https://www.econbiz.de/10009363362
Using firm-level data on offshoring of Korean manufacturers, the paper examines the relationship between firm heterogeneity and the probability of adopting offshoring. The results of the paper suggest that firm productivity may not be an important determinant for Korean firms offshoring...
Persistent link: https://www.econbiz.de/10009363753