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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/30720
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| Title: | | Profit sharing, wage formation and flexible outsourcing under labor market imperfection  |
| Authors: | | Koskela, Erkki König, Jan |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper 2925 |
| Abstract: | | We combine profit sharing and outsourcing, if the wage for worker is decided by a labor union to analyze how does the implementation of profit sharing affect individual effort and the bargained wage and thus outsourcing? We find that profit sharing and the wage level have an individual effort-augmenting effect and therefore increase productivity. We also find that the wage effect of profit sharing is ambiguous. There is a wage decreasing substitution effect, but on the other hand, there is a wage increasing effect via labor demand elasticity so that outsourcing and employment effects are also ambiguous. |
| Subjects: | | flexible outsourcing profit sharing employee effort labor market imperfection |
| JEL: | | E23 E24 J23 J33 J82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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