%0 Report %A Koskela, Erkki %A König, Jan %T Can Profit Sharing Lower Flexible Outsourcing? A Note %D 2009 %8 2009 Mar %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4063 %U https://www.iza.org/index.php/publications/dp4063 %X 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. %K flexible outsourcing %K profit sharing %K labour market imperfection