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See detailContracting out and labor demand elasticities
Gorg, Holger; Picard, Pierre M UL; Strobl, Eric A

E-print/Working paper (2005)

We examine the relationship between contracting out and the wage elasticity of labor demand in outsourcing plants. A simple theoretical model suggests that firms engaged in contracting out have lower wage ... [more ▼]

We examine the relationship between contracting out and the wage elasticity of labor demand in outsourcing plants. A simple theoretical model suggests that firms engaged in contracting out have lower wage elasticities. Estimating plant level dynamic labor demand equations for Irish manufacturing we find evidence supportive of this. [less ▲]

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