We conduct a field experiment on 427 Israeli soldiers who each rolled a six-sided die in private and reported the outcome. For every point reported, the soldier received an additional half-hour early release from the army base on Thursday afternoon. We find that the higher a soldier’s military entrance score, the more honest he is on average. We replicate this finding on a sample of 156 civilians paid in cash for their die reports. Furthermore, the civilian experiments reveal that two measures of cognitive ability predict honesty, whereas general self-report honesty questions and a consistency check among them are of no value. We provide a rationale for the relationship between cognitive ability and honesty and discuss its generalizability.

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.

The Averly foundry in Saragossa is an enterprise belonging to the mechanical constructions branch. It opened in 1863 with eight workers, and by the end of the XlXth century it employed one hundred workers. This article tries to understand the labour policies developed by this family enterprise, as a function of its market outlook and its type of work organization, based on a division of jobs and tasks by qualifications. Looking at these policies, we consider this firm as an example of what is called «flexible specialization», with productions adapted to demands and customers' needs.