We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How … does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit … sharing before wage formation or decide for profit sharing after wage formation. What is the relationship between outsourcing …

We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better … technology embodied in the local capital. The decision of whether to offer an outsourcing contract weighs these two effects … against each other. The host country accepts the outsourcing contract if the higher price they pay for the outsourced good is …

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …

investigate how workers' labour market transitions are affected by international outsourcing. In order to do so, we estimate … nonparticipation. Outsourcing is found to have no significant impact on overall job stability in the manufacturing sector, but it is … associated with increased job stability in the service sector. Furthermore, the effect of outsourcing varies strongly across …

This paper presents an empirical analysis of ?outsourcing? using establishment level data for UK manufacturing … industries. We analyse an establishment?s decision to outsource and the subsequent effects of outsourcing on the establishment …?s productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …

international outsourcing. It is the first detailed study to address the effects of outsourcing on labour markets in the UK. In a … recent paper, Feenstra and Hanson (1996) estimate the effect of international outsourcing on wage inequality in the US. This … paper extends the FH approach by using more detailed definitions of outsourcing and skill. The analysis applies to UK …

This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot … manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how …

This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic …

This paper analyzes the issues of immigration and outsourcing in a general-equilibrium model of international factor … mobility. In our model, legal immigration is controlled through a quota, while outsourcing is determined both by the firms (in … response to market conditions) and through policy-imposed barriers. A loosening of the immigration quota reduces outsourcing …