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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...
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Using microdata, we analyse the determinants of firm relocation and outsourcing decisionsand their effects on firms …
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industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect …
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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 …
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