Arbeitspapier

Flexible outsourcing and the impacts of labour taxation in European Welfare States

In European Welfare States, unskilled workers are typically unionized, while the wage formation of skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost of outsourcing and lower factor price of outsourcing increase wage dispersion between the skilled and unskilled workers. Increasing wage tax progression of unskilled workers decreases the wage rate and increases the labour demand of unskilled workers. It decreases the welfare of unskilled workers and increases both the welfare of skilled workers and the profit of firms.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3699

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Thema
Flexible outsourcing
dual labour market
impacts of labour taxation
welfare state
Outsourcing
Dualer Arbeitsmarkt
Lohnsteuer
Qualifikation
Lohnstruktur
Sozialstaat
Europa

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:101:1-2008101445
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

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