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 …

other industries? In the case of committed profit sharing, outsourcing cost increases wage. Optimal flexible profit sharing … is smaller than in the absence of outsourcing, but outsourcing cost and wage will have ambiguous effect on optimal … wage effect. For equilibrium unemployment the effects of outsourcing cost and profit sharing are ambiguous both in case of …