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Internal versus External labour flexibility: The role of knowledge codification

  • Eve Caroli

    ()

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, EconomiX - CNRS : UMR7166 - Université Paris X - Paris Ouest Nanterre La Défense, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris)

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 HAL in its series PSE Working Papers with number halshs-00588315.

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Date of creation: Mar 2007
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Handle: RePEc:hal:psewpa:halshs-00588315
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