-skilled labor andperfect competition in high-skilled labor in the presence of outsourcing? A higher degree oftax progression by …

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 …