Flexible labor and innovation performance: evidence from longitudinal firm-level data
AbstractFirms with high shares of workers on fixed-term contracts tend to have higher sales of imitative new products but perform significantly worse on sales of innovative new products ("first on the market"). High functional flexibility in "insider--outsider" labor markets enhances a firm's new product sales, as do training efforts and highly educated personnel. We find weak evidence that larger and older firms have higher new product sales than do younger and smaller firms. Our findings should be food for thought to economists making unqualified pleas for the deregulation of labor markets. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 20 (2011)
Issue (Month): 3 (June)
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Other versions of this item:
- dekker, R & Kleinknecht, A.H. & Zhou, H, 2010. "Flexible labor and innovation performance: Evidence from longitudinal firm-level data," Economics and Management of Innovation Working Papers 2010-1, Delft University of Technology, Faculty of Technology, Policy and Management.
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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