scholarly journals The Rise of Domestic Outsourcing and the Evolution of the German Wage Structure

2015 ◽  
Author(s):  
Deborah Goldschmidt ◽  
Johannes F. Schmieder
2017 ◽  
Vol 132 (3) ◽  
pp. 1165-1217 ◽  
Author(s):  
Deborah Goldschmidt ◽  
Johannes F. Schmieder

Abstract The nature of the relationship between employers and employees has been changing over the past three decades, with firms increasingly relying on contractors, temp agencies, and franchises rather than hiring employees directly. We investigate the impact of this transformation on the wage structure by following jobs that are moved outside the boundary of lead employers to contracting firms. We develop a new method for identifying outsourcing of food, cleaning, security, and logistics services in administrative data using the universe of social security records in Germany. We document a dramatic growth of domestic outsourcing in Germany since the early 1990s. Event-study analyses show that wages in outsourced jobs fall by approximately 10–15% relative to similar jobs that are not outsourced. We find evidence that the wage losses associated with outsourcing stem from a loss of firm-specific rents, suggesting that labor cost savings are an important reason firms choose to contract out these services. Finally, we tie the increase in outsourcing activity to broader changes in the German wage structure, in particular showing that outsourcing of cleaning, security, and logistics services alone accounts for around 9% of the increase in German wage inequality since the 1980s.


1992 ◽  
Vol 9 (2) ◽  
pp. 202-218 ◽  
Author(s):  
M. Ramzan Akhtar

IntroductionIslamic teachings envisage a balanced society achieved through thefunctioning of Islamic institutions. This paper visualizes three main institutions:ukhiwah, ‘adl, and ihsan. Ukhuwah (brotherhood) promotes the bonds ofbrotherhood, and ‘adl (justice) enforces a system of individual and socialobligations. Islam stresses the importance of meeting one’s obligations, becauseeach obligation has its corresponding right. Thus, an individual’s effort to meethidher obligations leads to the fulfillment of everyone’s rights. This does notmean that Islam forbids one from demanding hidher rights, even though thisdemand does pose a problem related to human nature: an individual wants his/herrights and also some part of another person’s rights. Therefore, one group’sdemand for its rights tends to encroach upon the rights of another group, whichcauses social friction and disorder. The institution of ihsan (benevolence) goesone step further: it exhorts individuals to forego their rights for the sake of others,which is considered an act of piety.This paper will study employer-employee relationships in the light of thethree institutions mentioned above. A framework for conducting employer-employeerelationships is formulated and is then used to determine, from theIslamic point of view, the proper wages. The findings of this paper show thatan economically efficient and equitable wage structure can evolve within thisframework and that such a wage structure would promote the parties’ mutualrelationships which, in turn, would lead to industrial peace.The body of the paper is organized as follows: a review of the existingliterature on the subject, the development of an Islamic framework for employer-employeerelationships, a discussion of the Islamic approach to wagecompensation, and some concluding remarks ...


Author(s):  
Thomas NMI Ferguson ◽  
James K. Galbraith
Keyword(s):  

ILR Review ◽  
1963 ◽  
Vol 16 (2) ◽  
pp. 311
Author(s):  
Koji Taira ◽  
Miyohei Shinohara ◽  
Naomichi Funahashi
Keyword(s):  

2009 ◽  
Vol 16 (7) ◽  
pp. 739-744 ◽  
Author(s):  
Hung-Lin Tao ◽  
I-Ting Chen
Keyword(s):  

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