Flexible outsourcing and the impacts of labour taxation in European welfare states

"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 do...

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Bibliographic Details
Main Authors: Koskela, Erkki, Poutvaara, Panu
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Munich 2008
CESifo
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19180709124919089819-Flexible-outsourcing-and-the-i.htm
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author Koskela, Erkki
Poutvaara, Panu
author_facet Koskela, Erkki
Poutvaara, Panu
collection Library items
description "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 lowskilled workers decreases the wage rate and increases the labour demand of low-skilled workers. It decreases the welfare of low-skilled workers and increases both the welfare of high-skilled workers and the profit of firms."
format TEXT
geographic EU countries
id 19180709124919089819_8ac63992a22c48a19a65b5402307602c
institution ETUI-European Trade Union Institute
is_hierarchy_id 19180709124919089819_8ac63992a22c48a19a65b5402307602c
is_hierarchy_title Flexible outsourcing and the impacts of labour taxation in European welfare states
language English
physical 37 p.
Digital
publishDate 2008
publisher Munich
CESifo
spellingShingle Koskela, Erkki
Poutvaara, Panu
labour flexibility
outsourcing
taxation
wage rate
welfare state
Flexible outsourcing and the impacts of labour taxation in European welfare states
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=117171393535
title Flexible outsourcing and the impacts of labour taxation in European welfare states
topic labour flexibility
outsourcing
taxation
wage rate
welfare state
url https://www.labourline.org/KENTIKA-19180709124919089819-Flexible-outsourcing-and-the-i.htm