Equilibrium unemployment with outsourcing under labour market imperfections

Arbeitspapier

We study both the various consequences and the incentives of outsourcing. We argue that the wage elasticity of labour demand is increasing as a function of the share of outsourcing, which is importantly a result consistent with existing empirical research. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the negotiated wage in the high-wage country with an imperfectly competitive labour market so that outsourcing reduces equilibrium unemployment. Finally, we characterize the optimal production mode and show that stronger labour market imperfections lead to a production mode with a higher share of outsourcing.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 2628

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Arbeitslosigkeit ; Outsourcing ; Lohnverhandlungen ; Unvollkommener Markt ; Arbeitsmarkttheorie ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Koskela, Erkki ; Stenbacka, Rune
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/33879
• URN: urn:nbn:de:101:1-20080416369
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ