compensation scheme. What is the optimal production mode in terms of strategic outsourcing. We find that if firms will decide on …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 …

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …

This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …

It is analyzed the impacts of outsourcing cost and wage tax progression under labor market imperfections with Nash wage … bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a wage … negative effect on outsourcing. …

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 …

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …

. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the negotiated wage in the … mode with a higher share of outsourcing. …We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour …

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

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 wage tax exemption increase optimal outsourcing. Outsourcing will …

This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … exemption and the unemployment benefit payments affect domestic wage setting in the same way as in the absence of outsourcing …