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Title:Outsourcing cost and tax progression under Nash wage bargaining with flexible outsourcing PDF Logo
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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