Is labour market flexibility harmful to innovation?

Article Abstract:

Neoclassical economists argue that labor markets should become more flexible in order to reduce unemployment. This approach can bring benefits over the short term, but process and product innovation are discouraged over the longer term. Weak firms can reduce wages rather than having to innovate. The supply-side of the economy is undermined because what Schumpeter called creative destruction' cannot operate. There may be other damaging effects of labor market flexibility such as unwillingness of employers to invest in employee training.

Criticism and interpretation, Flexible work hours, Flexible hours, Schumpeter, Joseph Alois

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Integrating the internal and external labour markets

Article Abstract:

Internal labor markets have tended to be viewed from a static perspective, and use a dualistic framework in their analyses of work organization. The fragmentation of the labor market appears to undermine the importance of institutional structures in economic theories relating to employment and pay. A dynamic approach to labor markets can be used to show that competitive pressures that are both internal and external interact and affect employees' relative position in the labor market, and the strategies of employers.

Division of labor

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The working poor and the working of American labour markets

Article Abstract:

Links between industrial restructuring and low wages in the US and the US Midwest are examined in detail.

Wages

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