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

Erkki Koskela

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 (wage-increasing) 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. -- Nash wage bargaining ; outsourcing ; labor tax reform

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Year of publication:	2010
Authors:	Koskela, Erkki
Publisher:	München : CESifo
Subject:	Verhandlungstheorie des Lohnes \| Collective bargaining theory \| Lohnbildung \| Wage setting \| Outsourcing \| Kosten \| Costs \| Lohnsteuer \| Wage tax \| Steuerprogression \| Progressive taxation \| Beschäftigungseffekt \| Employment effect \| Theorie \| Theory

Extent:	Online-Ressource (13 S.)
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. 3142
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Parallel als Druckausg. erschienen
Other identifiers:	hdl:10419/39056 [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:	ECONIS - Online Catalogue of the ZBW

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