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Internal versus External Labour Flexibility: The role of knowledge codification

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  • Caroli Eve

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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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Suggested Citation

  • Caroli Eve, 2003. "Internal versus External Labour Flexibility: The role of knowledge codification," Research Unit Working Papers 0310, Laboratoire d'Economie Appliquee, INRA.
  • Handle: RePEc:lea:leawpi:0310
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    Keywords

    competences; knowledge codification; information technologies; internal labour markets;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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