Flexible Outsourcing and the Impacts of Labour Taxation in European Welfare States

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Flexible Outsourcing and the Impacts of Labour Taxation in European Welfare States

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dc.contributor.author Koskela, Erkki en_US
dc.contributor.author Poutvaara, Panu en_US
dc.date.accessioned 2009-02-04T10:28:16Z
dc.date.available 2009-02-04T10:28:16Z
dc.date.issued 2008-12-08T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7696
dc.description.abstract In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost of outsourcing and lower factor price of outsourcing increase wage dispersion between the high-skilled and low-skilled workers. Increasing wage tax progression of low-skilled workers decreases the wage rate and increases the labour demand of low-skilled workers. It decreases the welfare of lowskilled workers and increases both the welfare of high-skilled workers and the profit of firms. en_US
dc.format.extent 37 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2008-15 en_US
dc.title Flexible Outsourcing and the Impacts of Labour Taxation in European Welfare States en_US
dc.type wp en_US
dc.accessionstatus modt08dec05 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Centre for Economic and Business Research en_US
dc.contributor.departmentshort CEBR en_US
dc.contributor.departmentuk Centre for Economic and Business Research en_US
dc.contributor.departmentukshort CEBR en_US
dc.idnumber x656557434 en_US
dc.publisher.city København en_US
dc.publisher.year 2008 en_US


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