-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher … domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing. Outsourcing will …

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

It is analyzed the impacts of outsourcing cost and wage tax progression under labor market imperfections with Nash wage … bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a wage … negative effect on outsourcing. …

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour … demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research …. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the negotiated wage in the …

This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … exemption and the unemployment benefit payments affect domestic wage setting in the same way as in the absence of outsourcing …

-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 … of outsourcing and lower factor price of outsourcing increase wage dispersion between the high-skilled and low …

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …

This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …