Arbeitspapier

Outsourcing and labor taxation in dual labor markets

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing. Outsourcing will reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of outsourcing, wage tax, tax exemption and payroll tax have an ambiguous effect on equilibrium unemployment. Increasing the degree of tax progression decreases the wage rate and increases the demand of low-skilled workers.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3522

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Thema
Outsourcing
dual labor markets
labor taxation
equilibrium unemployment
Outsourcing
Dualer Arbeitsmarkt
Lohnsteuer
Arbeitslosigkeit
Qualifikation
Theorie

Ereignis
Geistige Schöpfung
(wer)
Koskela, Erkki
Poutvaara, Panu
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
URN
urn:nbn:de:101:1-20080605170
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Koskela, Erkki
  • Poutvaara, Panu
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

Ähnliche Objekte (12)