Outsourcing and Labor Taxation in Dual Labor Markets

OPEN ARCHIVE

Union Jack
Dannebrog

Outsourcing and Labor Taxation in Dual Labor Markets

Vis flere oplysninger

Titel: Outsourcing and Labor Taxation in Dual Labor Markets
Forfatter: Koskela, Erkki; Poutvaara, Panu
Resume: We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing. Outsourcing will reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of outsourcing, wage tax, tax exemption and payroll tax have an ambiguous effect on equilibrium unemployment. Increasing the degree of tax progression decreases the wage rate and increases the demand of low-skilled workers.
URI: http://hdl.handle.net/10398/7697
Dato: 2008-12-05

Creative Commons License This work is licensed under a Creative Commons License.

Filer Størrelse Format Vis
dp 2008-09.pdf 198.2Kb PDF Vis/Åbn

Dette dokument findes i følgende samling(er)

Vis flere oplysninger