A positive relationship between firm size and product diversification is a long-standing stylized fact. However, so far …

privatization activity appears to be outsourcing. …

A service provider firm in an outsourcing relationship is distinct from a typical firm because it is not a stand alone …, rent, energy consumption cannot appropriately determine a Business Process Outsourcing (BPO) firm’s productivity. Academic … perspective of the host country, the sourcing firm, the global outsourcing industry and of course the service provider firm. In …

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 …

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …

The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk ofunskilled workers; (ii …) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto …

into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with …