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outsourcing and profit sharing on the unemployment rate is ambiguous both in the committed and flexible case …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 …
Persistent link: https://www.econbiz.de/10013324831
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/10012764238
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/10013148291
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/10013324739
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/10013141774
We study both the various consequences and the incentives of outsourcing. We argue that the wage elasticity of labour … demand is increasing as a function of the share of outsourcing, which is importantly a result consistent with existing … empirical research. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the …
Persistent link: https://www.econbiz.de/10012777445
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 … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage …
Persistent link: https://www.econbiz.de/10014051183
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/10013315998
Young and small firms are typically matched with younger and nonemployed individuals, and they provide these workers with lower earnings compared to other firms. To explore the mechanisms behind these facts, a dynamic model of entrepreneurship is introduced, where individuals can choose not to...
Persistent link: https://www.econbiz.de/10012999532
We analyze the impact of profit sharing on the share of workers receiving training. An effect is plausible because: 1) profit sharing is a credible commitment by firms to reward firm-specific skills acquired by formal or informal training, 2) profit sharing may reduce turnover and increase the...
Persistent link: https://www.econbiz.de/10013118053