Flexible Labor and Innovation Performance: Evidence from Longitudinal Firm-Level Data
AbstractFirms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of innoÂ¬vaÂ¬tive new products (â€œfirst on the marketâ€). High functional flexibility in â€œinsider-outsiderâ€ laÂ¬bor markets enhances a firmâ€™s new product sales, as do training efforts and highly eduÂ¬caÂ¬Â¬ted personnel. We find weak evidence that larger and older firms have higher new proÂ¬duct sales than do younger and smaller firms. Our findings should be food for thought to eco-nomists making unqualified pleas for the deregulation of labor markets.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2010-007-ORG.
Date of creation: 21 Jan 2010
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J5; M5; O15; O31; OSA longitudinal dataset; SMEs; innovation performance; new product sales; numerical flexibility;
Other versions of this item:
- Haibo Zhou & Ronald Dekker & Alfred Kleinknecht, 2011. "Flexible labor and innovation performance: evidence from longitudinal firm-level data," Industrial and Corporate Change, Oxford University Press, vol. 20(3), pages 941-968, June.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-20 (All new papers)
- NEP-BEC-2010-02-20 (Business Economics)
- NEP-ENT-2010-02-20 (Entrepreneurship)
- NEP-INO-2010-02-20 (Innovation)
- NEP-LAB-2010-02-20 (Labour Economics)
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