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Non-standard work and innovation: evidence from European industries

Author

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  • Jelena Reljic
  • Armanda Cetrulo
  • Valeria Cirillo
  • Andrea Coveri

Abstract

Following a market-oriented approach, policies aimed at increasing labour flexibility by weakening employment protection institutions should enable firms to efficiently allocate resources, improve their capability to compete on international markets and adjust to economic cycle. This work documents the rise of non-standard (i.e. temporary and part-time) work in five European countries (Germany, France, Italy, the Netherlands and the United Kingdom) over the period 1994–2016 and investigates the nexus between the use of non-standard work and innovation performance using data for 18 manufacturing and 23 service industries. Contrary to the objectives that market-oriented policy recommendations promised to achieve, we show that there is a significantly negative association between the share of workers employed under non-standard contractual arrangements and the introduction of both product and process innovation. Furthermore, we show that the harmful consequences of the spread of non-standard work on firms’ product innovation propensity are more pronounced in high-tech sectors.

Suggested Citation

  • Jelena Reljic & Armanda Cetrulo & Valeria Cirillo & Andrea Coveri, 2023. "Non-standard work and innovation: evidence from European industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(1), pages 136-164, January.
    • Handle: RePEc:taf:ecinnt:v:32:y:2023:i:1:p:136-164
    DOI: 10.1080/10438599.2021.1893139
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    Cited by:

    1. A. Cetrulo & A. Sbardella & M. E. Virgillito, 2023. "Vanishing social classes? Facts and figures of the Italian labour market," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 97-148, January.
    2. Cetrulo, Armanda & Cirillo, Valeria & Landini, Fabio, 2022. "Organized Labour and R&D: Evidence from Italy," GLO Discussion Paper Series 1195, Global Labor Organization (GLO).
    3. Luca Cattani & Stefano Dughera & Fabio Landini, 2023. "Interlocking complementarities between job design and labour contracts," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 501-528, July.
    4. Guarascio, Dario & Reljic, Jelena & Stöllinger, Roman, 2023. "Artificial Intelligence and Employment: A Look into the Crystal Ball," GLO Discussion Paper Series 1333, Global Labor Organization (GLO).
    5. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    6. Franco, Chiara & Landini, Fabio, 2022. "Organizational drivers of innovation: The role of workforce agility," Research Policy, Elsevier, vol. 51(2).

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