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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... …
Persistent link: https://www.econbiz.de/10005859632
We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a … heterogeneous labour market, where wages are determinedby a monopoly labour union. We find that outsourcing promotes the wage …
Persistent link: https://www.econbiz.de/10005863113
We study both the various consequences and the incentives of outsourcing. We argue thatthe wage elasticity of labour … demand is increasing as a function of the share of outsourcing,which is importantly a result consistent with existing …
Persistent link: https://www.econbiz.de/10005863250