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Equilibrium Unemployment with Outsourcing and Wage Solidarity Under Labour Market Imperfections
Koskela, Erkki; Stenbacka, Rune - Institute for the Study of Labor (IZA) - 2007
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 …
Persistent link: https://www.econbiz.de/10005233784
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Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing
Koskela, Erkki - Institute for the Study of Labor (IZA) - 2010
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10008693839
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Outsourcing and Labor Taxation in Dual Labor Markets
Koskela, Erkki; Poutvaara, Panu - Institute for the Study of Labor (IZA) - 2008
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 …
Persistent link: https://www.econbiz.de/10005763596
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Good Skills in Bad Times: Cyclical Skill Mismatch and the Long-Term Effects of Graduating in a Recession
Liu, Kai; Salvanes, Kjell G.; Sørensen, Erik Ø. - Institute for the Study of Labor (IZA) - 2012
We show that cyclical skill mismatch, defined as mismatch between the skills supplied by college graduates and skills demanded by hiring industries, is an important mechanism behind persistent career loss from graduating in recessions. Using Norwegian data, we find a strong countercyclical...
Persistent link: https://www.econbiz.de/10010884273
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Wage Rigidity and Job Creation
Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - Institute for the Study of Labor (IZA) - 2008
Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...
Persistent link: https://www.econbiz.de/10005233819
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Cyclical Skill-Biased Technological Change
Balleer, Almut; van Rens, Thijs - Institute for the Study of Labor (IZA) - 2009
Over the past two decades, technological progress has been biased towards making skilled labor more productive. What does skill-biased technological change imply for business cycles? To answer this question, we construct a quarterly series for the skill premium from the CPS and use it to...
Persistent link: https://www.econbiz.de/10005030900
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Piece Work Pay and Hourly Pay over the Cycle
Hart, Robert A. - Institute for the Study of Labor (IZA) - 2006
This paper investigates the relative cyclical behavior of the pay of piece workers and hourly paid workers. It uses a unique data set of blue-collar workers in British engineering between 1926 and 1966. The statistics are obtained from the payrolls of firms belonging to the Engineering Employers...
Persistent link: https://www.econbiz.de/10005566350
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Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives
Dustmann, Christian; Glitz, Albrecht; Vogel, Thorsten - Institute for the Study of Labor (IZA) - 2009
In this paper, we analyse differences in the cyclical pattern of employment and wages of immigrants and natives for two large immigrant receiving countries, Germany and the UK. We show that, despite large differences in their immigrant populations, there are similar and significant differences...
Persistent link: https://www.econbiz.de/10008565184
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North-South Technology Diffusion, Regional Integration, and the Dynamics of the "Natural Trading Partners" Hypothesis
Schiff, Maurice; Wang, Yanling - Institute for the Study of Labor (IZA) - 2004
Based on static analysis, a number of studies argue that forming a RTA is more likely to raise welfare if member countries are "natural trading partners," while other studies claim the opposite. This paper considers the argument from a dynamic viewpoint by examining the impact of trade with...
Persistent link: https://www.econbiz.de/10005703120
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The Effects of Labour Tax Progression under Nash Wage Bargaining and Flexible Outsourcing
Koskela, Erkki - Institute for the Study of Labor (IZA) - 2008
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 … demand is higher than in the case of strategic outsourcing and a decreasing function of the outsourcing cost, an increasing …
Persistent link: https://www.econbiz.de/10005822254