transitions between labor status or jobs, whereas for those at the top, earnings changes are mainly induced by wage rate growth …

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 …

sector and an informal sector which absorbs unemployed workers at a flexible wage rate. In this set up greater education for …

income in East Germany. The bias difference in labor market expectations explains part of the East-West German wage gap …