Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/44162 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 5097
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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 (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.
Subjects: 
Nash wage bargaining
outsourcing
labor tax reform
JEL: 
H22
J41
J51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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