TY  - RPRT
        AU  - Koskela, Erkki
AU  - König, Jan
        TI  - The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing
        PY  - 2011/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5798
        UR  - https://www.iza.org/publications/dp5798
        AB  - We combine profit sharing for high-skilled workers and outsourcing of low-skilled tasks in partly imperfect dual domestic labour markets, when the wage rate for low-skilled worker is set by a labor union, to analyze how the implementation of profit sharing influence flexible outsourcing and low-skilled labour market outcome. Profit sharing has a positive effect on the low-skilled wage and thus an outsourcing enhancing character. Profit sharing for high-skilled workers increases the low-skilled wage and helps to decrease the wage dispersion. Concerning the employment effects there is an employment reducing effect due to higher low-skilled wage, which can be offset by the employment increasing effect of higher effort of the high-skilled worker. Therefore, the employment effects of profit sharing are ambiguous.
        KW  - dual labour market
KW  - profit sharing
KW  - flexible outsourcing
KW  - employee effort
        ER  -