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The Network Economy and Models of the Employment Contract: Psychological, Economic and Legal

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  • David Marsden

Abstract

The emergence of the so-called ¿network economy¿ and the development of project-basedwork pose a fundamental challenge to established methods of regulating the employmentrelationship. There appears to be an unsatisfied demand for its greater use, especially amongemployers, and it is argued that this may be blocked by the lack of suitable contractual forms,such as those that have underpinned the established open-ended employment relationship.Project-based work seeks to retain some of the open-ended flexibility of the standardemployment relationship in relation to its task content but not its duration. The paper arguesthe success of the standard employment relationship owes much to the articulation of itspsychological, economic/incentive, and legal aspects. As yet, this appears to be lacking formore transient forms of relationship.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0620.

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Date of creation: Feb 2004
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Handle: RePEc:cep:cepdps:dp0620

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: Network economy; Labor Contracting; Labor Law; Labor-Management Relations;

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  1. Peter AUER & Sandrine CAZES, 2000. "The resilience of the long-term employment relationship: Evidence from the industrialized countries," International Labour Review, International Labour Organization, International Labour Organization, vol. 139(4), pages 379-408, December.
  2. Marsden, David, 1999. "A Theory of Employment Systems: Micro-Foundations of Societal Diversity," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198294221, October.
  3. Alice Lam, 2003. "Organizational Learning in Multinationals: R&D Networks of Japanese and US MNEs in the UK," Journal of Management Studies, Wiley Blackwell, Wiley Blackwell, vol. 40(3), pages 673-703, 05.
  4. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, July.
  5. Joseph E. Stiglitz, 1984. "Theories of Wage Rigidity," NBER Working Papers 1442, National Bureau of Economic Research, Inc.
  6. Alan Paul & Archie Kleingartner, 1994. "Flexible production and the transformation of industrial relations in the motion picture and television industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(4), pages 663-678, July.
  7. James C. Sesil & Maya K. Kroumova & Joseph R. Blasi & Douglas L. Kruse, 2002. "Broad-based Employee Stock Options in US 'New Economy' Firms," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 273-294, 06.
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