Profit Sharing and Outsourcing under Labor Market Imperfection
نویسندگان
چکیده
منابع مشابه
Labor market pooling , outsourcing and labor contracts
Labor Market Pooling, Outsourcing and Labor Contracts Economic regions, such as urban agglomerations, face external demand and price shocks that produce income risk. Workers in large and diversified agglomerations may benefit from reduced wage volatility, while firms may outsource the production of intermediate goods and realize benefits from Chamberlinian externalities. Firms may also protect ...
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We analyze the following questions under imperfect labour markets. How does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit sharing before wage formation or decide for profit sharing after wage formation? What is the relationship between outsourcing, profit sharing, and equilibrium unemployment? We find that in both scenario...
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a r t i c l e i n f o We study how agents decide between working for firms with profit sharing and firms in which pay is based on individual productivity. Profit sharing has the disadvantages of free riding and adverse selection. The benefit of profit sharing is that it makes easier for agents to signal their productivity. We show that in equilibrium skilled agents are more likely to belong to ...
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The possibility of sunspot equilibria and endogenous cycles due to self-fulfilling expectations are explored in a one-sector overlapping-generations model with credit market imperfection. It is shown that a strategic complementarity between agent’s optimal labor supply decisions may arise when the credit market is imperfect. Multiplicity of steady states and local indeterminacy of equilibrium c...
متن کاملEquilibrium unemployment under negotiated profit sharing
We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base wages and profit shares are determined through collective bargaining. The negotiated profit share depends positively on the relative bargaining power of the trade union and has effort-enhancing and wage-moderating effects. We show that higher profit sharing reduces equilibrium ...
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ژورنال
عنوان ژورنال: Review of International Economics
سال: 2012
ISSN: 0965-7576
DOI: 10.1111/j.1467-9396.2011.01004.x