Resource title

Can profit sharing lower flexible outsourcing?: a note

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Resource description

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.

Resource author

Erkki Koskela, Jan K├Ânig

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26651

Resource license

Adapt according to the presented license agreement and reference the original author.