Abstract: |
Labor market flexibility continues to be one of economics, politics and
society highly debated topic. In recent years, the impact of increased labor
market flexibility on research and innovation has gained more and more
attention. Previous studies have shown, depending on the measurement of
flexibility as well as on the data that both positive and negative influences
can be found. However, the financial flexibility in terms of wage rigidities
has hardly been explored empirically. With the use of a unique dataset
combining comprehensive information from both employers and employees we can
accomplish variables not only to numerical and functional, but also to
financial wage flexibility. In a panel probit model, we show that the
influences of most of the indicators of wage flexibility are positive and vary
by type of innovation. While the variables of wage bargaining has a higher
impact on process innovations, information about specific wage levels,
however, affects in particular the development of new products. The same
applies to a separate consideration of wage bargaining levels. Aspects of
numerical and functional labor market flexibility, in contrast, act negative
on all types of innovation. Thereby, part time employees affect particularly
processes, while flexible employment contracts have a stronger influence on
product innovations. It seems that new products depend more on employment
status and the resulting motivation of the employees. |