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Internal Versus External Labour Flexibility: The Role of Knowledge Codification

Published online by Cambridge University Press:  26 March 2020

Eve Caroli
Eve Caroli*
Affiliation:
Paris X University, EconomiX and Paris School of Economics
*
e-mail: [email protected]
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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.

Keywords

Competencesknowledge codificationinformation technologiesinternal labour marketsB52O33M51
Type
Articles
Information
National Institute Economic Review , Volume 201 , July 2007 , pp. 107 - 118
Copyright
Copyright © 2007 National Institute of Economic and Social Research

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Footnotes

I am grateful to Robert Boyer and Jérôme Gautiér for numerous and extensive discussions about this paper. The present version owes a lot to comments by Geoff Mason and Ed Steinmueller on an earlier draft. I also thank Andrea Bassanini, Patrick Cohendet, Thomas Coutrot, Giovanni Dosi and Aija Leiponen for their remarks and suggestions. All remaining errors are my own. I gratefully acknowledge financial support from DARES (French Ministry of Labour).

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