Template-Type: ReDIF-Paper 1.0 Author-Name: Zhou, H. Author-Name-Last: Zhou Author-Name-First: Haibo Author-Name: Dekker, R. Author-Name-Last: Dekker Author-Name-First: Ronald Author-Name: Kleinknecht, A. Author-Name-Last: Kleinknecht Author-Name-First: Alfred Title: Flexible Labor and Innovation Performance: Evidence from Longitudinal Firm-Level Data Abstract: Firms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of inno¬va¬tive new products (“first on the market”). High functional flexibility in “insider-outsider” la¬bor markets enhances a firm’s new product sales, as do training efforts and highly edu¬ca¬¬ted personnel. We find weak evidence that larger and older firms have higher new pro¬duct sales than do younger and smaller firms. Our findings should be food for thought to eco-nomists making unqualified pleas for the deregulation of labor markets. Creation-Date: 2010-01-21 File-URL: https://repub.eur.nl/pub/18037/ERS-2010-007-ORG.pdf File-Format: application/pdf Series: RePEc:ems:eureri Number: ERS-2010-007-ORG Classification-JEL: M, M13, O31, O32 Keywords: J5, M5, O15, O31, OSA longitudinal dataset, SMEs, innovation performance, new product sales, numerical flexibility Handle: RePEc:ems:eureri:18037