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Internal versus External Labour Flexibility : The Role of Knowledge Codification

Caroli, Eve (2007), Internal versus External Labour Flexibility : The Role of Knowledge Codification, National Institute Economic Review, 201, p. 107-118

Type
Article accepté pour publication ou publié
Date
2007-07
Journal name
National Institute Economic Review
Number
201
Publisher
London National Institute of Economic and Social Research
Pages
107-118
Metadata
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Author(s)
Caroli, Eve
Abstract (EN)
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.
Subjects / Keywords
Competences; knowledge codification; information technologies; internal labour markets
JEL
B52 - Institutional; Evolutionary
O33 - Technological Change: Choices and Consequences; Diffusion Processes
M51 - Firm Employment Decisions; Promotions

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