Working Paper
Redistributive Income Taxation under Outsourcing and Foreign Direct Investment
Thomas Aronsson, Erkki Koskela
CESifo, Munich, 2010
CESifo Working Paper No. 3051
CESifo, Munich, 2010
CESifo Working Paper No. 3051
![](https://cesifo.org/DocImg/cesifo1_wp3051.jpg?c=1689237010)
This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for, domestic labor.
CESifo Category
Public Choice
Public Choice
Keywords: outsourcing, foreign direct investment, optimal nonlinear taxation
JEL Classification: D600,H210,H230,H250,J310