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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/10419/39056
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| Title: | | Outsourcing cost and tax progression under Nash wage bargaining with flexible outsourcing  |
| Authors: | | Koskela, Erkki |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper Labour Markets 3142 |
| Abstract: | | 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 (wage-increasing) 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. |
| Subjects: | | Nash wage bargaining outsourcing labor tax reform |
| JEL: | | H22 J41 J51 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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