Premium
Unemployment, Labour Institutions and Innovation
Author(s) -
Villeval MarieClaire
Publication year - 1996
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1996.tb00083.x
Subject(s) - unemployment , labour economics , economics , order (exchange) , rationing , deregulation , technological change , transactional leadership , production (economics) , trilogy , market economy , economic growth , macroeconomics , management , art , health care , literature , finance
This contribution endorses the transactional trilogy of institutional economics in order to suggest a theoretical framework for re‐examining the relationships between unemployment, labour institutions, and technological and organisational innovation. Labour institutions are usually called into question in the debates on European unemployment. Although the advocates of the biased technological change thesis defend it in order to improve the employment of unskilled workers, this article argues that a deregulation of the labour market may in fact generate losses of dynamic efficiency with respect to knowledge accumulation, the organisation of production and national capabilities of innovation. In addition, the impact of technological and organisational innovation on employment partly depends on the capabilities of firms and nations to initiate institutional learning, regarding bargaining, managerial and rationing transactions.