Outsourcing cost and tax progression under Nash wage bargaining with flexible outsourcing

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-moderating (wageincreasing) effect so that there is a negative (positive) effect on equilibrium unemployment. Higher tax progression, to keep the relative tax burden per worker constant, has a wage moderating and a positive effect on employment and negative effect on outsourcing.

MoreLess

Year of publication:	2010
Authors:	Koskela, Erkki
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Nash wage bargaining \| outsourcing \| labor tax reform

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	IZA Discussion Papers ; 5097
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	643798382 [GVK] hdl:10419/44162 [Handle]
Classification:	H22 - Incidence ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J51 - Trade Unions: Objectives Structure, and Effects
Source:	EconStor

Persistent link: https://www.econbiz.de/10010272639