Koskela, Erkki; König, Jan - Institute for the Study of Labor (IZA) - 2010
We analyze the impact of international outsourcing on income, if the domestic labor market is imperfect. We distinguish … and profit share. We find that in the first case outsourcing will reduce (increase) workers' income, if the labor union … sufficiently high (low) labor union's bargaining power, while in a wage and profit share bargaining system, a higher union …