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Does international outsourcing really lower workers’ income?

Koskela, Erkki; König, Jan - 2010

We analyze the impact of international outsourcing on income, if the domestic labor market is imperfect. We distinguish … and profit share. We find that in the first case outsourcing will reduce (increase) workers' income, if the labor union …’s bargaining power is sufficiently high (low) and outsourcing will increase workers' income in the second case. For the amount of …

Persistent link: https://www.econbiz.de/10003964369

Gravity Redux: Estimation of gravity-equation coefficients, elasticities of substitution, and general equilibrium comparative statics under asymmetric bilateral trade costs

Bergstrand, Jeffrey H.; Egger, Peter; Larch, Mario - In: Journal of International Economics 89 (2013) 1, pp. 110-121

A large class of models with CES utility and iceberg trade costs are now known to generate isomorphic “gravity equations.” Economic interpretations of these gravity equations vary in terms of two basic elements: the exporter's “mass” variable and the elasticity of trade with respect to...

Persistent link: https://www.econbiz.de/10011056323

Optimal tariffs, retaliation, and the welfare loss from tariff wars in the Melitz model

Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - In: Journal of International Economics 89 (2013) 1, pp. 13-25

This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition and firm heterogeneity in general equilibrium, thereby extending the small-country results of Demidova and Rodríguez-Clare (JIE, 2009) and the homogeneous firms framework of Gros...

Persistent link: https://www.econbiz.de/10011056329

Spatial exporters

Defever, Fabrice; Heid, Benedikt; Larch, Mario - In: Journal of International Economics 95 (2015) 1, pp. 145-156

In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the impact of this spatial pattern using a data set of Chinese firms which had...

Persistent link: https://www.econbiz.de/10011191003

The role of profit sharing in a dual labour market with flexible outsourcing

Koskela, Erkki (contributor); König, Jan (contributor) - 2008

We analyze the following questions associated with flexible outsourcing under partly imperfect dual domestic labour … sharing influence flexible outsourcing? What is the relationship between outsourcing cost, profit sharing and wages? We show … that profit sharing has a positive effect on low skilled wage and thus an outsourcing enhancing character. The wages of …

Persistent link: https://www.econbiz.de/10003784381

Can profit sharing lower flexible outsourcing? : a note

Koskela, Erkki; König, Jan - 2009

We analyze the following question associated with flexible outsourcing under imperfect domestic labour market: How does … the implementation of profit sharing influence flexible outsourcing? We show that in general profit sharing has a negative … effect on low skilled wage and thus an outsourcing decreasing character. However due to labour union determination of effort …

Persistent link: https://www.econbiz.de/10003824951

Profit sharing, wage formation and flexible outsourcing under labor market imperfection

Koskela, Erkki; König, Jan - 2010

We combine profit sharing and outsourcing, if the wage for worker is decided by a labor union to analyze how does the … implementation of profit sharing affect individual effort and the bargained wage and thus outsourcing? We find that profit sharing … a wage increasing effect via labor demand elasticity so that outsourcing and employment effects are also ambiguous …

Persistent link: https://www.econbiz.de/10003935073

The role of profit sharing in dual labour markets with flexible outsourcing

Koskela, Erkki; König, Jan - 2011

We combine profit sharing for high-skilled workers and outsourcing of low-skilled tasks in partly imperfect dual … of profit sharing influence flexible outsourcing and low-skilled labour market outcome. Profit sharing has a positive … effect on the low-skilled wage and thus an outsourcing enhancing character. Profit sharing for high-skilled workers increases …

Persistent link: https://www.econbiz.de/10009309507

Strategic outsourcing, profit sharing and equilibrium unemployment

Koskela, Erkki (contributor); König, Jan (contributor) - 2008

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/10003748877