[en] 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.
Economic systems & public economics
Author, co-author :
Gorg, Holger; University of Nottingham
Picard, Pierre M ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Strobl, Eric A; Département d'Économie École Polytechnique ; Institut de Préparation à l'Administration et à la Gestion (IPAG)