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Internal versus external labour flexibility: The role of knowledge codification

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Eve Caroli

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Abstract

This article uses a competence-based approach to the firm in order to analyse the recent destabilisation of internal labour markets. We argue that increasing knowledge codification made possible by the diffusion of information and communication technologies has made competences less dependent upon individuals. Knowledge has been increasingly embodied in firms themselves which has played an important role in lowering the relative cost of human resource management strategies based on external labour flexibility. As a consequence, recourse to external labour markets has developed, which may harm firms' innovative capabilities in the long run.

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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number 2007-05.

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Date of creation: 2007
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Handle: RePEc:pse:psecon:2007-05

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  1. David Neumark, 2000. "Changes in Job Stability and Job Security: A Collective Effort to Untangle, Reconcile, and Interpret the Evidence," NBER Working Papers 7472, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Bj–rn Johnson & Edward Lorenz & Bengt-Åke Lundvall, 2002. "Why all this fuss about codified and tacit knowledge?," Industrial and Corporate Change, Oxford University Press, vol. 11(2), pages 245-262.
  4. Eliasson, Gunnar, 1990. "The firm as a competent team," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 275-298, June. [Downloadable!] (restricted)
  5. Giovanni Dosi & Luigi Marengo, 1999. "On the tangled discourse between transaction costs economics and competence-based views of the firms: Some comments," LEM Papers Series 1999/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  6. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March. [Downloadable!] (restricted)
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  7. Cowan, Robin, 2001. "Expert systems: aspects of and limitations to the codifiability of knowledge," Research Policy, Elsevier, vol. 30(9), pages 1355-1372, December. [Downloadable!] (restricted)
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  8. Teece, David J, 1993. "The Dynamics of Industrial Capitalism: Perspectives on Alfred Chandler's Scale and Scope," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 199-225, March. [Downloadable!] (restricted)
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  10. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour market regulation, industrial relations and technological regimes: a tale of comparative advantage," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 391-426, June.
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  11. Cowan, Robin & Foray, Dominique, 1997. "The Economics of Codification and the Diffusion of Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 595-622, September.
  12. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier. [Downloadable!] (restricted)
  13. Mason, Geoff & Beltramo, Jean-Paul & Paul, Jean-Jacques, 2004. "External knowledge sourcing in different national settings: a comparison of electronics establishments in Britain and France," Research Policy, Elsevier, vol. 33(1), pages 53-72, January. [Downloadable!] (restricted)
  14. Chandler, Alfred D, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer. [Downloadable!] (restricted)
  15. Ancori, Bernard & Bureth, Antoine & Cohendet, Patrick, 2000. "The Economics of Knowledge: The Debate about Codification and and Tacit Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 255-87, June.
  16. Robin Cowan & Paul A. David & Dominique Foray, 1999. "The Explicit Economics of Knowledge Codification and Tacitness," Working Papers 99027, Stanford University, Department of Economics. [Downloadable!]
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  17. Valletta, Robert G, 1999. "Declining Job Security," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S170-97, October. [Downloadable!] (restricted)
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  18. Cohendet, Patrick, et al, 1999. "Knowledge Coordination, Competence Creation and Integrated Networks in Globalised Firms," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 225-41, March.
  19. Steven Casper & Henrik Glimstedt, 2001. "Economic Organization, Innovation Systems, and the Internet," Oxford Review of Economic Policy, Oxford University Press, vol. 17(2), pages 265-281, Summer.
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  1. Hempell, Thomas & Zwick, Thomas, 2005. "Technology Use, Organisational Flexibility and Innovation: Evidence for Germany," ZEW Discussion Papers 05-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. BEHAGHEL Luc & GREENAN Nathalie, 2007. "Training and age-biased technical change," Research Unit Working Papers 0705, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
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