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 …

outsourcing by locating part of the production process abroad. Our results show that the incentive to relax the self … outsourcing. Without a direct instrument for taxing outsourcing, the government may reduce the amount of resources spent on … outsourcing by increased provision of the public input good, which is desirable in the sense that reduced outsourcing contributes …

production to the other. In the country whose firms outsource production abroad, the government will respond to outsourcing by … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production …. -- outsourcing ; redistribution ; optimal nonlinear taxation ; intertemporal model …

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 …