What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function …

the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … for employment. However, except for low outsourcingactivities, the impact of these policy measures will become smaller as …