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http://hdl.handle.net/10419/51951
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| Title: | | The role of profit sharing in dual labour markets with flexible outsourcing  |
| Authors: | | Koskela, Erkki König, Jan |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5798 |
| Abstract: | | We combine profit sharing for high-skilled workers and outsourcing of low-skilled tasks in partly imperfect dual domestic labour markets, when the wage rate for low-skilled worker is set by a labor union, to analyze how the implementation of profit sharing influence flexible outsourcing and low-skilled labour market outcome. Profit sharing has a positive effect on the low-skilled wage and thus an outsourcing enhancing character. Profit sharing for high-skilled workers increases the low-skilled wage and helps to decrease the wage dispersion. Concerning the employment effects there is an employment reducing effect due to higher low-skilled wage, which can be offset by the employment increasing effect of higher effort of the high-skilled worker. Therefore, the employment effects of profit sharing are ambiguous. |
| Subjects: | | flexible outsourcing profit sharing dual labour market employee effort |
| JEL: | | J31 J33 J51 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-2011062853 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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