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Global sourcing of complex production processes

Schwarz, Christian; Südekum, Jens - 2013

We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...

Persistent link: https://www.econbiz.de/10010213481

Offshoring and job polarisation between firms

Egger, Hartmut; Kreickemeier, Udo; Moser, Christoph; … - 2016

We set up a general equilibrium model, in which offshoring to a low-wage country can lead to job polarisation in the … pay wages that are positively linked to their profits by a rent-sharing mechanism. Offshoring involves fixed and task … variable offshoring costs. A reduction in those variable costs increases offshoring at the intensive and at the extensive …

Persistent link: https://www.econbiz.de/10011555746

Flexibility in wage setting under the threat of relocation

Goeddeke, Anna; Haucap, Justus; Herr, Annika; Wey, Christian - 2017

Relocation of production to countries with low labour cost have induced increased labour market flexibility, which has been praised as a silver bullet for economic growth and low unemployment. Within a unionised oligopoly framework, in which a multi-national firm has the option to relocate its...