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Outsourcing and labor taxation in dual labor markets

Koskela, Erkki; Poutvaara, Panu - 2008

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of … outsourcing, wage tax, tax exemption and payroll tax have an ambiguous effect on equilibrium unemployment. Increasing the degree …

Persistent link: https://www.econbiz.de/10010264385

Flexible outsourcing and the impacts of labour taxation in European welfare states

Koskela, Erkki; Poutvaara, Panu - 2008

In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual...

Persistent link: https://www.econbiz.de/10010264468

Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing

Koskela, Erkki - 2009

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low-skilled and high-skilled workers constant in the case of heterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled...

Persistent link: https://www.econbiz.de/10010265972

Analysis of labor tax progression under heterogeneous domestic labor markets and flexible outsourcing

Koskela, Erkki - 2010

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low-skilled and high-skilled workers constant in the case of heterogeneous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled...

Persistent link: https://www.econbiz.de/10010275003

Equilibrium Unemployment with Outsourcing andWage Solidarity Under Labour Market Imperfections

Koskela, Erkki; Stenbacka, Rune - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a …

Persistent link: https://www.econbiz.de/10005863113

Equilibrium Unemployment with OutsourcingUnder Labour Market Imperfections

Koskela, Erkki; Stenbacka, Rune - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

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 empirical research...

Persistent link: https://www.econbiz.de/10005863250

Does Short-Time Work Save Jobs? A Business Cycle Analysis

Balleer, Almut; Gehrke, Britta; Lechthaler, Wolfgang; … - 2014

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …

Persistent link: https://www.econbiz.de/10010333423

Optimal Fiscal Policy with Labor Selection

Chugh, Sanjay K.; Lechthaler, Wolfgang; Merkl, Christian - 2018

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market...

Persistent link: https://www.econbiz.de/10011887380

Equilibrium unemployment with outsourcing under labour market imperfections

Koskela, Erkki; Stenbacka, Rune - 2007

high-wage country with an imperfectly competitive labour market so that outsourcing reduces equilibrium unemployment …

Persistent link: https://www.econbiz.de/10010264053

Equilibrium unemployment with outsourcing and wage solidarity under labour market imperfections

Koskela, Erkki; Stenbacka, Rune - 2007

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high … unemployment under the reasonable condition that the proportion of high-skilled workers is sufficiently low. …

Persistent link: https://www.econbiz.de/10010264123