TY - RPRT AU - Koskela, Erkki AU - König, Jan TI - Can Profit Sharing Lower Flexible Outsourcing? A Note PY - 2009/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4063 UR - https://www.iza.org/index.php/publications/dp4063 AB - 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. KW - flexible outsourcing KW - profit sharing KW - labour market imperfection ER -