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The 'network economy' and models of the employment contract: psychological, economic and legal

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  • David Marsden
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    Abstract

    The emergence of the so-called ‘network economy’ and the development of project-based work pose a fundamental challenge to established methods of regulating the employment relationship. There appears to be an unsatisfied demand for its greater use, especially among employers, 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 standard employment relationship in relation to its task content but not its duration. The paper argues the success of the standard employment relationship owes much to the articulation of its psychological, economic/incentive, and legal aspects. As yet, this appears to be lacking for more transient forms of relationship.

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    File URL: http://eprints.lse.ac.uk/4676/
    File Function: Open access version.
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    Bibliographic Info

    Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 4676.

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    Length: 34 pages
    Date of creation: Feb 2004
    Date of revision:
    Handle: RePEc:ehl:lserod:4676

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    Related research

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

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    References

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    1. Marsden, David, 1999. "A Theory of Employment Systems: Micro-Foundations of Societal Diversity," OUP Catalogue, Oxford University Press, number 9780198294221, Octomber.
    2. Edward P. Lazear, 1995. "Personnel Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121883, December.
    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, vol. 40(3), pages 673-703, 05.
    4. Robert Salais, 1989. "L'analyse économique des conventions du travail," Revue Économique, Programme National Persée, vol. 40(2), pages 199-240.
    5. 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.
    6. Teulings,Coen & Hartog,Joop, 2008. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521049399, April.
    7. 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.
    8. Peter AUER & Sandrine CAZES, 2000. "The resilience of the long-term employment relationship: Evidence from the industrialized countries," International Labour Review, International Labour Organization, vol. 139(4), pages 379-408, December.
    9. 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.
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