Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy

Abstract

The aim of this study is to define and measure numerical and functional labor flexibility at the firm level and investigate empirically the impact of each of these flexibility modes on performance and innovation measures as well as the interrelationship between them. Our estimation equation contains, besides the classical production factors labor and physical capital, information and communication technologies (ICT) capital, human capital, variables for flexible organizational practices as well as measures for numerical labor flexibility. The empirical investigation is based on data for about 1400 Swiss firms. © The Author 2005. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.