The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing
نویسندگان
چکیده
The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing 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. JEL Classification: J31, J33, J51
منابع مشابه
1 . The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing
We analyse the following question associated with flexible outsourcing under partly imperfect dual domestic labour markets, where skilled workers participate in a firm’s profit: First, how does the implementation of profit sharing influence flexible outsourcing and low-skilled wage and thus how does it affect employment? Second, how do the outsourcing costs affect the low-skilled wage? We show ...
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