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 … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

"With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …

This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic …

measures of outsourcing and examines their determinants and consequences for employment. There are some commonalities in the … correlates of the two measures of outsourcing, as well as agreement on the absence of adverse employment effects across all … between outsourcing and plant closings is predominantly negative, albeit poorly determined. -- Outsourcing ; organizational …

This paper shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of … strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage … firms as outsourcing costs fall. With respect the impact of labor tax reforms that are well-established in the literature …

This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of … outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages … demand is higher than in the case of strategic outsourcing and a decreasing function of the outsourcing cost, an increasing …

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 …

influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …

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 …

International outsourcing to lower cost countries such as China and India can best be understood through the enrichment … insights into the forces driving international outsourcing. The paper focuses on relationship-specific investment, incomplete … contracts, and also search and matching, as fundamental concepts that explain outsourcing decisions …