2007-05-25Buch DOI: 10.18452/4053
A Note on the Effect of Outsourcing on Union Wages
We analyze the effect of outsourcing on union wages in a simple two-stage game between a firm and a union. In contrast to public perception the ease with which the firm can outsource parts of their production does not necessarily reduce the wage set by the union. Even in the simple model framework a surprisingly large number of conflicting effects is established.
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