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the share of the outsourced workforce is not too large, this wage moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … for employment. However, except for low outsourcing activities, the impact of these policy measures will become smaller as …
Persistent link: https://www.econbiz.de/10012770785
What are the impacts of labor tax reform on wage setting and employment to keep therelative tax burden per low … of low-skilled workers, whereas it willdecrease (increase) employment of high-skilled workers in CES utility function …
Persistent link: https://www.econbiz.de/10009360617
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...
Persistent link: https://www.econbiz.de/10005859632
employees and employers and firms unilaterally determine employment, to discuss the relationship between labour taxation and … employment. In imperfectly competitive labour markets higher labour taxes - income and payroll taxes - will increase labour costs … and have negative effects on employment. Tax progression tends to moderate wages and boost employment. Moreover, if labour …
Persistent link: https://www.econbiz.de/10014114975
The Finnish unemployment rose in the early 1990 s from three to eighteen percent in four years. Unemployment has then decreased to the average European level, being 8.5 percent in October 2002. In this paper, we describe the shocks leading to this unforeseen increase in unemployment. We then...
Persistent link: https://www.econbiz.de/10011506222
We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base … destructive from the point of view of employment when the labour market "rigidities" are sufficiently small …
Persistent link: https://www.econbiz.de/10013319814
Finnish unemployment rose in the early 1990s from 3% to 18% in just four years. It has since fallen back to the average European level, being 9.0% in January 2003. In this paper, we describe the shocks leading to this unforeseen increase in unemployment. We then discuss and research the role of...
Persistent link: https://www.econbiz.de/10013320050
wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost of …
Persistent link: https://www.econbiz.de/10005822783
What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function …
Persistent link: https://www.econbiz.de/10008693839
What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function …
Persistent link: https://www.econbiz.de/10008727293