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We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10013120903
Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...
Persistent link: https://www.econbiz.de/10012777491
The paper investigates the consequences of outsourcing of labor intensive activities to lowwage economies. This trend … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii …) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto …
Persistent link: https://www.econbiz.de/10013316451
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the “indirect … outsourcing of the “less important” supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10010550244
This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …
Persistent link: https://www.econbiz.de/10008596589
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10009278130
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10008727293
down outsourcing into two types by distinguishing whether or not they involve technology sharing between the two parties … technology-sharing-outsourcing IPRs promote outsourcing of more complex goods to a destination country by guaranteeing the … protection of their technology, (ii) for non-technology-related-outsourcing IPRs attract the outsourcing of less complex products …
Persistent link: https://www.econbiz.de/10010701087
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 …
Persistent link: https://www.econbiz.de/10005765774
We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How … 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 …
Persistent link: https://www.econbiz.de/10005765833