Can profit sharing lower flexible outsourcing? A note
Institute of Labor Economics, Bonn
IZA - Bonn
2009
17 p.
labour flexibility ; profit sharing ; outsourcing ; trade union attitude
Discussion Paper Series
4063
Production management
English
Bibliogr.
"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."
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