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Implementing performance pay requires that workers' output be measured. Whenmeasurement costs differ among firms, those with a measurement cost advantage choose toimplement performance pay. They attract the best workers, and both the level and variabilityof compensation are higher at these firms...
Persistent link: https://www.econbiz.de/10005862076
Using microdata, we analyse the determinants of firm relocation and outsourcing decisionsand their effects on firms …
Persistent link: https://www.econbiz.de/10005862317
industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect …
Persistent link: https://www.econbiz.de/10005862878
We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a … heterogeneous labour market, where wages are determinedby a monopoly labour union. We find that outsourcing promotes the wage …
Persistent link: https://www.econbiz.de/10005863113
We study both the various consequences and the incentives of outsourcing. We argue thatthe wage elasticity of labour … demand is increasing as a function of the share of outsourcing,which is importantly a result consistent with existing …
Persistent link: https://www.econbiz.de/10005863250
an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in … an outsourcing equilibrium than in a regime of no outsourcing. Consumer welfare rises, and under fairly plausible …
Persistent link: https://www.econbiz.de/10014049472
We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …
Persistent link: https://www.econbiz.de/10014051183
Informal long-term relationships and mutual confidence play a crucial role in modern economies in at least two dimensions. First, the performance of firms is strongly affected by their capacity to solve organizational questions effectively and this capacity is apparently strongly related to...
Persistent link: https://www.econbiz.de/10013134812
This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based...
Persistent link: https://www.econbiz.de/10013134820
We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...
Persistent link: https://www.econbiz.de/10013136032