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-skilled labor intensive production to the South. We consider two interrelated issues: (i) the incentives for each country to modify …
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We combine profit sharing and outsourcing, if the wage for worker is decided by a labor union to analyze how does the … a wage increasing effect via labor demand elasticity so that outsourcing and employment effects are also ambiguous …. -- Flexible outsourcing ; profit sharing ; employee effort ; labor market imperfection …
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domestic labour markets, when the wage rate for low-skilled worker is set by a labor union, to analyze how the implementation …
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Status considerations with respect to consumption give rise to negative externalities because individuals do not take into account that their decisions affect the relative consumption position of others. Further, status concerns create incentives for excessive labour supply in competitive...
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Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...
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