We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a …

unemployment. Finally, we characterize the optimal production mode and show that stronger labour market imperfections lead to a …

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high … unemployment under the reasonable condition that the proportion of high-skilled workers is sufficiently low …

, profit sharing, and equilibrium unemployment when profit sharing is also a part of a compensation scheme in all industries … sharing. For equilibrium unemployment, we find that if there is also profit sharing in other industries, the effects of … outsourcing and profit sharing on the unemployment rate is ambiguous both in the committed and flexible case …

unemployment also constitutes an incentive to implement a tax on outsourcing. Without a direct instrument for taxing outsourcing …