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 …

non-OECD countries. The findings suggest that the quality of institutions matters to a large extent for economic outcomes …

whether policy effects vary across countries depending on the level of economic development and whether institutions have an … influence on economic outcomes. The paper lists of policies and institutions that could be used to quantify the effect of …

, profit sharing, and equilibrium unemployment depending on whether in other industries profit share is or is not a part of the …. Under flexible profit sharing wage is higher if optimal profit share is small enough. For equilibrium unemployment, we find … that if there is no profit sharing in other industries, outsourcing will decrease the unemployment rate. But if profit …

outsourcing cost, profit sharing and equilibrium unemployment, when profit sharing is also a part of the compensation schemes in … wage effect. For equilibrium unemployment the effects of outsourcing cost and profit sharing are ambiguous both in case of … the absence or presence of outsourcing and in this case lower outsourcing cost will decrease unemployment. …