Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2004 | nr 25 A New All-European Development Model in an Enlarged EU : Social and Economic Aspects | 264--286
Tytuł artykułu

Labour Market Flexibility and Technological Innovation Desperately Seeking a Trade-Off

Warianty tytułu
Języki publikacji
Lack of labour market flexibility has often been accounted for the low growth rates in the European Union. A recent report on "An Agenda for a Growing Europe", better known as the Sapir Report, discussed this issue and clearly stated the terms of the trade off between growth and lack of flexibility. The Report acknowledges that flexibility involves a range of social and economic drawbacks. Nonetheless it contends that "At a time of very rapid change and a need to adjust both production and skills quickly, flexibility comes at a premium.". In this paper I focus on a range of microeconomic issues, involving the conceptual plausibility of the claimed trade off and the implications that a policy based on such a trade off may have in terms of both growth and social welfare. I argue that the assumptions underlying the trade off are not clear because the notion of innovation in the Report is rather confused. Contrary to what the Report claims, flexibility turns out to be irrelevant for the innovation it purports. Flexibility might produce some effects but only with innovations that the Report neglects. I contend that the effects of flexibility may be to reduce innovation and the potential for growth. Truly, flexibility may allow firms to introduce new technology, but it may also lead firms away from innovation in so far as it allows them to pursue profit through other means, i.e. through cost scrapping. My final argument is that the notion of trade off that the Report refers to is misleading in that it in no way takes account of the social costs that flexibility would determine. I conclude my discussion by drawing a few implications for economic policy.(fragment of text)
  • University of Macerata, Italy
  • Amin A., P. Cohendet (1999) "Organisational Learning and Governance Through Embedded Practices", paper presented at the 1999. EAEPE Conference on "Inequality and Integration: Challenges for Institutional Economics", Prague, 4-7 November 1999.
  • Arena R., C. Charbit: (1998) "Marshall, Andrews and Richardson on Markets: an interpretation" in N.J. Foss, B.J. Loasby (1998).
  • Arestis P., M. Sawyer (2003) "Macroeconomic Policies of the Monetary Union: Theoretical Underpinnings and Challenges" The Levy Economics Institute Working Paper No. 385.
  • Bianchi P. (2003) "L'industria italiana", paper presented at the 2003 Conference of the Societa Italiana degli Economisti, Salerno, 24 October.
  • Caroli E. (2003) "Internal versus external labour flexibility: The role of knowledge codification", LEA Working Paper, 0310.
  • &r=cbe.
  • Coase R.H. (1960) "The Problem of Social Cost" in The Journal of Law and Economics, 3 (Also published in R.H. Coase The Firm, the Market, and the Law, Chicago, Chicago University Press 1988.
  • Davidson C., S.J. Matusz (2000) "Globalization and labour-market adjustment: How fast and at what cost?", in Oxford Review of Economic Policy, 16, 3.
  • Dosi G., R.R. Nelson, S.G. Winter (2000) "Introduction: The Nature and Dynamics of organizational Capabilities", in G. Dosi, R.R. Nelson, S.G. Winter (eds.) The Nature and Dynamics of organizational Capabilities, Oxford, Oxford University Press pp. 185-211.
  • Egidi M. (1992) "Organizational Learning, Problem Solving and the Division of Labour" in M. Egidi, R. Marris (eds.) Economics, Bounded Rationality and the Cognitive Revolution, anh the Cognitive Revolution , Aldershot, Elgar.
  • Foss N.J., B.J. Loasby (eds.) (1998) Economic Organization, Capabilities and Coordination Essays in honour of G.B. Richardson, London, Routledge.
  • Groenewegen J., J. Vromen (1997) "The Theory of the Firm Revisited", in L. Magnusson, J. Ottoson (eds.) Path Dependency and Evolution, Aldershot, Elgar.
  • Kapp K.W. (1963) Social Costs of Business Enterprise, Bombay, Asia Publishing House.
  • Latsis S.J. (1976) "A Research Program in Economics", in Method and Appraisal in Economics, Cambridge, Cambridge University Press 1-41.
  • Loasby B.J. (1991) Equilibrium and Evolution. An Exploration of Connecting Principles in Economics, Manchester, Manchester University Press.
  • Loasby B.J. (1999) Knowledge, Institutions and Evolution in Economics, London, Routledge.
  • Lombardi M. (2003) "The evolution of local production systems: the emergence of the 'invisible mind' and the evolutionary pressures towards more 'visible minds'" Research Policy, 32, pp. 1443-62.
  • Metcalfe J.S. (1998) Evolutionary Economics and Creative Destruction, London, Routledge.
  • Michie J., M. Sheehan (2003) "Labour market deregulation, 'flexibility' and innovation", in Cambridge Journal of Economics, 27, 01, pp. 123-143 .
  • Minsky H.P. (1982) "Finance and Profits: The Changing Nature of American Business Cycles", in Can 'It' Happen Again? Essays on Instability and Finance, New York, M.E. Sharpe.
  • Minsky H.P. (1993) "Schumpeter and Finance", in S. Biasco, A. Roncaglia, M. Salvati (eds.) Markets and Institutions in Economic Development: essays in honour of Paolo Sylos Labini, New York, St Martin's Press.
  • PfefFer J., G.R. Salancik (1978) The External Control of Organisations, New York. Harper and Row.
  • Piva M., Santarelli E., Vivarelli M. (2003) " Hie Skill-Bias Effect of Technological and Organisational Change: Evidence and Policy Implications", mimeo.
  • Polanyi K. (1957), "The economy as instituted process", in Polanyi K. et al. (eds.), Trade and market in early empires: economies in history and theory, New York, The Free Press .
  • Ramazzotti P. (2004) "What Do Firms Ixam? Capabilities, Distribution and the Division of labour", in J. Foster, S. Metcalfe (eds.) Evolution and Economic Complexity, Cheltenham, Elgar.
  • Rangone M., P. Ramazzotti (2004) "Unemployment as a Social Cost", Dipartimento di Istituzioni Economiche e Finanziarie Temi di Discussione, 20.
  • .
  • Richardson G.B. (1959) "Equilibrium, expectations and information" in Economic Journal, pp. 223- 237.
  • Richardson, G.B. (1972) 'The Organization of Industry', Economic Journal. September; in id. Information and Investment, Oxford: Clarendon Press, 1990.
  • Sapir A. et al. (2003) "An Agenda for a Growing Europe. Making the EU Economic System Deliver", http^/europa. eu. i nt/comm/dgs/ pol i cyad visers/ experts _groups/ps2/docs/agenda_en. pdf.
  • Sen A. (1984), Resources, Values and Development, Oxford. Basil Blackwell.
  • Sen A. (1999), Development as Freedom, New York, Alfred Knopf.
  • Simon, H.A. (1981), ' l'he Architecture of Complexity', in The Sciences of the Artificial, Cambridge (Mass.): MIT Press.
  • Swaney J.A., M.A. Evers (1989) "The social cost concept of K. William Kapp and Karl Polanyi", Journal of Economic Issues, XXIII, pp.7-33.
  • Teece D.J., G. Pisano (1998) "The Dynamic Capabilities of Firms: an Introduction", in G. Dosi, D.J. Teece, J. Chytry (eds.) Technology, Organization, and Competitiveness. Perspectives on Industrial and Corporate Change, Oxford, Oxford University Press.
  • UNDP (2003) Human Development Report 2003. Millennium Development Goals: A compact among nations to end human poverty, http://hdr.undp.Org/report.s/global/2003/.
  • Whalen C.J. (2002) "Money Manager Capitalism: Still Here, But Not Quite as Expected ", in Journal of Economic Issues, 2, pp. 401-406.
  • Wolfson M.H. (2002) "Minsky's Theory of Financial Crises in a Global Context", in Journal of Economic Issues, 2, pp. 393-400.
Typ dokumentu
Identyfikator YADDA

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.