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 …

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 …

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 …

max-mean wage differential. The latter measure of wage dispersion is more robust than measures based on the reservation … wage, due to the long left tail of the wage distribution. We estimate this wage differential using data on match quality … and allow for measurement error. The estimated wage dispersion and mismatch for the US is consistent with an unemployment …