-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation … affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost … of outsourcing and lower factor price of outsourcing increase wage dispersion between the high-skilled and low …

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by … function so this will have no total employment effects. -- flexible outsourcing ; dual labor market ; impacts of labour …

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …. -- heterogeneous domestic labor markets ; wage bargaining ; impacts of labor taxation ; outsourcing …

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 …