-moderation effect on domestic employment outweighs the direct substitution effect so that domestic employment increases in unionized … burden per worker constant continues to be good for employment. However, except for low outsourcing activities, the impact of … these policy measures will become smaller as outsourcing costs fall. -- Outsourcing ; union wage-setting ; employment …

affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a … employment depending on the subsidies’ incidence and income effects. Wage subsidies also allow a more equal income distribution …

In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a … firm's additional employment exceeding some reference level and create larger employment stimuli at lower fiscal costs than … marginal subsidization), the replacement of regular paid workers by outsourcing employment to newly established firms a …