Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35357
Authors: 
Koskela, Erkki
König, Jan
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4063
Abstract: 
We analyze the following question associated with flexible outsourcing under imperfect domestic labour market: How does the implementation of profit sharing influence flexible outsourcing? We show that in general profit sharing has a negative effect on low skilled wage and thus an outsourcing decreasing character. However due to labour union determination of effort a constant effort level will result so that in this case firm's optimal choice of profit sharing is zero.
Subjects: 
Flexible outsourcing
profit sharing
labour market imperfection
JEL: 
E24
J23
J33
J51
J82
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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