This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …

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 …’s bargaining power is sufficiently high (low) and outsourcing will increase workers' income in the second case. For the amount of …

This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of … outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages … demand is higher than in the case of strategic outsourcing and a decreasing function of the outsourcing cost, an increasing …

This paper shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of … strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage … firms as outsourcing costs fall. With respect the impact of labor tax reforms that are well-established in the literature …

more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect … wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost of … outsourcing and lower factor price of outsourcing increase wage dispersion between the skilled and unskilled workers. Increasing …

We analyze the following questions associated with flexible outsourcing under partly imperfect dual domestic labour … sharing influence flexible outsourcing? What is the relationship between outsourcing cost, profit sharing and wages? We show … that profit sharing has a positive effect on low skilled wage and thus an outsourcing enhancing character. The wages of …

Nash wage bargaining and flexible outsourcing. A revenue-neutral increase in the wage tax progression will decrease the … negotiated wage rate, increase domestic labor demand and decrease international outsourcing. In the presence of wage tax … exemption, a lower payroll tax and a higher wage tax will increase domestic labor demand and decrease international outsourcing …

We analyze the following question associated with flexible outsourcing under imperfect domestic labour market: How does … the implementation of profit sharing influence flexible outsourcing? We show that in general profit sharing has a negative … effect on low skilled wage and thus an outsourcing decreasing character. However due to labour union determination of effort …

abroad, and where outsourcing is substitutable for domestic low-ability labor. Our results show that the incentives for the … unemployment also constitutes an incentive to implement a tax on outsourcing. Without a direct instrument for taxing outsourcing …, the government may reduce the amount of resources spent on outsourcing by increased provision of the public input good …

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by … function so this will have no total employment effects. -- Flexible outsourcing ; dual labor market ; impacts of labour …