Arbeitspapier

Outsourcing cost and tax progression under Nash wage bargaining with flexible outsourcing

It is analyzed the impacts of outsourcing cost and wage tax progression under labor market imperfections with Nash wage bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a wage-moderating (wageincreasing) effect so that there is a negative (positive) effect on equilibrium unemployment. Higher tax progression, to keep the relative tax burden per worker constant, has a wage moderating and a positive effect on employment and negative effect on outsourcing.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5097

Classification
Wirtschaft
Taxation and Subsidies: Incidence
Labor Contracts
Trade Unions: Objectives, Structure, and Effects
Subject
Nash wage bargaining
outsourcing
labor tax reform

Event
Geistige Schöpfung
(who)
Koskela, Erkki
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
URN
urn:nbn:de:101:1-201008117863
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

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

Time of origin

  • 2010

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