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 … dispersion between the high-skilled and low-skilled workers. When the labour union adopts a solidaristic wage policy, it will …

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 …

In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high … affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost … of outsourcing and lower factor price of outsourcing increase wage dispersion between the high-skilled and low …

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand … when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of wage tax …

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labor demand … when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of wage tax …

We study the impact of tax policy on wage negotiations, workers' effort, employment, output and welfare when workers …' effort is only imperfectly observable. We show that the different wage-setting motives - rent sharing and effort incentives … higher degree of tax progression always leads to wage moderation, the well-established result from the wage bargaining …

This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as … the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the … affect the well-established qualitative results of the impact labour tax reforms have: changes in the wage tax rate, the tax …

It is analyzed the impacts of outsourcing cost and wage tax progression under labor market imperfections with Nash wage … bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a wage …-moderating (wage-increasing) effect so that there is a negative (positive) effect on equilibrium unemployment. Higher tax progression …

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour …. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the negotiated wage in the … high-wage country with an imperfectly competitive labour market so that outsourcing reduces equilibrium unemployment …

does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit … sharing before wage formation or decide for profit sharing after wage formation. What is the relationship between outsourcing … profit sharing before the wage formation, higher outsourcing decreases wage whereas profit sharing has an ambiguous effect …