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... …

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 …

This paper shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of … strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage … firms as outsourcing costs fall... …

This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of … outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages …

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 …