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Labour market deregulation, 'flexibility' and innovation

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  • Jonathan Michie
  • Maura Sheehan
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    Abstract

    Labour 'flexibility' is often portrayed as important to competitive success. Using evidence from an original survey of UK firms, this paper investigates the relationships between firms' use of, on the one hand, various flexible work practices, human resource management techniques, and industrial relations systems and, on the other hand, the innovative activities of those firms. Our results suggest that the sort of 'low road' labour flexibility practices encouraged by labour market deregulation--short-term and temporary contracts, a lack of employer commitment to job security, low levels of training, and so on--are negatively correlated with innovation. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

    Volume (Year): 27 (2003)
    Issue (Month): 1 (January)
    Pages: 123-143

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    Handle: RePEc:oup:cambje:v:27:y:2003:i:1:p:123-143

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    Cited by:
    1. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2012. "Labour Shares and Employment Protection in European Economies," Quaderni del Dipartimento di Economia, Finanza e Statistica 111/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    2. Angelo Reati & Jan Toporowski, 2005. "An economic policy for the fifth long wave," GE, Growth, Math methods 0510008, EconWPA.
    3. Lee, Jong-Woon, 2013. "The In-House Contracting Paradox: Flexibility, Control, and Tension," World Development, Elsevier, vol. 45(C), pages 161-174.
    4. Mirella Damiani & Andrea Ricci, 2011. "Decentralised bargaining and performance related pay: new evidence from a panel of Italian firms," Quaderni del Dipartimento di Economia, Finanza e Statistica 97/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    5. Santiago-Rodriguez, Fernando, 2010. "Human resource management and learning for innovation: pharmaceuticals in Mexico," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Erol Taymaz & Sule Ozler, 2004. "Labor Market Policies and EU Accession: Problems and Prospects for Turkey," ERC Working Papers 0405, ERC - Economic Research Center, Middle East Technical University, revised Mar 2004.
    7. M. Battisti & F. Belloc & M. Del Gatto, 2012. "Unbundling technology adoption and tfp at the firm level. Do intangibles matter?," Working Paper CRENoS 201233, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2014. "Are regional systems greening the economy? The role of environmental innovations and agglomeration forces," SEEDS Working Papers 0414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Feb 2014.
    9. Luca Pieroni & Fabrizio Pompei, 2007. "Evaluating Innovation and Labour Market Relationships: The Case of Italy," Quaderni del Dipartimento di Economia, Finanza e Statistica 28/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    10. Antonioli, Davide & Mancinelli, Susanna & Mazzanti, Massimiliano, 2013. "Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies," Research Policy, Elsevier, vol. 42(4), pages 975-988.
    11. Luca Pieroni & Fabrizio Pompei, 2005. "Innovations and Labour Market Institutions: An Empirical Analysis of the Italian Case in the middle 90’s," Quaderni del Dipartimento di Economia, Finanza e Statistica 12/2005, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    12. Annalisa Cristini & Alessandro Gaj & Riccardo Leoni, 2008. "Direct and Indirect Complementarity between Workplace Reorganization and New Technology," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 87-117, March-Apr.
    13. Santiago, Fernando & Alcorta, Ludovico, 2012. "Human resource management for learning through knowledge exploitation and knowledge exploration: Pharmaceuticals in Mexico," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 530-546.
    14. Yılmaz Kılıçaslan & Erol Taymaz, 2008. "Labor market institutions and industrial performance: an evolutionary study," Journal of Evolutionary Economics, Springer, vol. 18(3), pages 477-492, August.

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