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Recent economic recession has highlighted the role of labour market flexibility as a key factor of competitiveness of a country. Despite the fact that labour mobility can essentially be seen as part of labour market flexibility, there is notable research gap concerning spatial mobility and other facets of labour market flexibility. The purpose of this special issue is to fill these gaps.

The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, labour force or immigrant surveys, job search portal, etc.) is used. However, the type of labour market flexibility addressed is both micro- and macro-level.

It is demonstrated that labour occupational mobility is determined by the business cycle, numerical flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilities in the workplace. It is also suggested that different types of flexibilities on a firm level are interdependent of each other.

The special issue adds to the labour market related knowledge by integrating labour market flexibility and mobility. Individually, both phenomena have been studied before, but not much research is devoted to their inter-linkages. The special issue also contributes by examining labour market flexibility and spatial mobility in the context of different countries, economic cycles, and institutional settings.

The existing literature on aid for trade (AfT) tends to support the effectiveness of AfT in improving trade capacities and enhancing the export performance of recipient countries. While aid directed at trade-related infrastructure (e.g. ports and roads) is reported to drive the overall effect of AfT, the increasing importance of labor market flexibility and informal labor in export environment has been largely overlooked. The purpose of this paper is to test two hypotheses regarding the relationship between labor market flexibility, exports and AfT. First, flexible labor regulation promotes exports by reducing adjustment costs related to the export process. Second, for informal labor-intensive export sectors, AfT effectiveness may be compromised by the contraction of the informal sector due to labor deregulation as it deteriorates comparative advantage that supports recipients’ export competitiveness.

Since first introduced by Tinbergen (1962), the gravity model has been widely used to analyze bilateral trade, and its usefulness has been verified in several prominent empirical studies (e.g. Anderson and van Wincoop, 2003; Helpman et al., 2008). However, despite the empirically successful framework of the gravity model, the standard gravity equation may not be appropriate for estimating the effect of AfT in the paper. The main interest lies in whether aggregate AfT flows enhance the export “performance” of individual recipients, that is, whether they improve the recipients’ total exports rather than their bilateral exports. For this purpose, the authors took aggregated approach to the gravity model from Anderson and van Wincoop (2003).

The findings suggest that while both AfT and labor market flexibility are positively associated with higher export levels, the export-promoting effect of AfT is marginally reduced by the contraction of informal workforce. These findings, however, only hold for export sectors that heavily rely on informal labor force, that is, primary commodities and resource/labor-intensive goods. The authors also find that these effects are stronger in low-income countries, indicating that the AfT initiative has been effective where it is needed the most.

This paper is the first attempt to analyze the relationship between AfT and exports with consideration of labor market flexibility. Using the data for 85 recipient countries, the authors test the following hypotheses. First, labor market flexibility promotes exports by reducing adjustment costs related to the exporting process. Second, the contraction of the informal sector due to labor deregulation deteriorates developing countries’ comparative advantage in certain export sectors. Hence, while both AfT and labor market flexibility are expected to enhance the export volume of developing countries, the loss from weaker comparative advantage in a form of smaller informal labor force can exceed the gains from AfT in certain sectors.

The subject of part‐time work is one which has become increasingly important in industrialised economies where it accounts for a substantial and growing proportion of total employment. It is estimated that in 1970, average annual hours worked per employee amounted to only 60% of those for 1870. Two major factors are attributed to explaining the underlying trend towards a reduction in working time: (a) the increase in the number of voluntary part‐time employees and (b) the decrease in average annual number of days worked per employee (Kok and de Neubourg, 1986). The authors noted that the growth rate of part‐time employment in many countries was greater than the corresponding rate of growth in full‐time employment.

This paper investigates the relationship between national culture and the main dimensions of employment flexibility. A cultural model of comparative labour market flexibility is developed. Using Hofstede’s indices for measuring national culture, hypotheses concerning the association between a range of variables measuring employment flexibility (such as employment patterns, working time, unemployment and labour mobility) are regressed on Hofstede’s four cultural variables. The results suggest a strong association between Hofstede’s masculinity versus femininity index and employment patterns, working timeand unemployment. Employment “inflexibility” is linked to cultural values reflecting feminine gender structuring of society. A strong relationship between Hofstede’s individualism versus collectivism variable and labour mobility is also established, which suggests that labour mobility is less, and job tenure longer in countries where there is greater cultural loyalty to the group. The results are supportive of a cultural model and have implications for both comparative labour market theory and policy.

The research question which this paper aims to address is: To what extent does (labour) flexibility contribute to crisis resistance at establishment level? More specifically, the authors seek to analyse the determinants of variation in the extent to which establishments showed resistance to the global financial crisis (GFC), i.e. the extent to which they were affected by the crisis, focusing on an available secondary dataset related to organizational, industry‐level, and (numerical) labour flexibility.

Based on a unique cross‐sectional dataset of 8,000 establishments in Germany, the authors use binary logistic regression to assess the link between organizational characteristics, industry‐specific factors and workforce characteristics, and the fact that some establishments were affected by the GFC while others were not affected.

Establishment size, being located in western Germany and business problems before the crisis were positively associated with being affected by the crisis. The sector of economic activity also played a significant role. Contrary to predictions relating to the strategies employed by flexible firms, the extent to which they made use of temporary agency workers or of fixed‐term employees showed no significant association with crisis resistance.

The dependent variable measures the management respondent's (subjective) perception of being affected by the crisis, although it does not specify the ways in which a company has been affected, for example by a drop in demand or by difficulty in extending credit. The set of independent variables permits several tentative conclusions regarding numerical and functional flexibility, but it does not take alternative forms of flexibility into account.

Using a unique and representative dataset, the findings suggest a less important role for numerical flexibility in establishment performance and crisis resistance when compared to other variables, at least within the authors’ research framework and its exceptional external economic circumstances.

This paper aims to shed light upon the controversial relationship between labour market flexibility and innovation in Italy, paying attention both to inter‐sectoral heterogeneity and to the regional differences.

A set of hypotheses concerning the context‐dependent relationship between labour market flexibility and innovation has been formulated by combining the main results of the theoretical literature concerning this topic. Regional patents are used as a proxy of innovation, while job turnover and wages represent labour market indicators of flexibility. Non‐parametric models and dynamic structural specification of panel data have been estimated to test the aforementioned hypotheses.

The results show that higher job turnover has a significant and negative impact on patent activities in regional sectors of northern Italy, while a positive and significant effect of blue and white collar wages has been generally found in the estimations.

There is a lack of updated information regarding labour market data in the Italian economy.

Knowing in which sectoral and regional context labour flexibility has (or does not have) a positive influence on innovation plays a key role for the decisions of policy makers.

This paper deals with the influence that the heterogeneity of the contexts (at the sectoral and geographical level) exerts on the relationship between the labour market and innovation. Moreover, the endogenous character of this relationship and the cumulative nature of innovative activities have been taken into account by means of a parsimonious dynamic econometric model.

Flexibility has become a buzz word in the 1980s. It has been seen as crucial to improvements in productivity. It has been cited as a prominent example of how markets have been made to “work better” and how changed market forces surrounding firms have produced changed working arrangements within firms. In a number of articles, Atkinson and his colleagues have argued that employers have developed a new “flexible firm” manpower strategy. It has an inner “core” of stable, skilled employees with secure employment and good conditions. Here flexibility is qualitative. Traditional craft demarcations are relaxed and workers are trained to be multi‐skilled. Around the core is an outer layer of peripheral workers with poorer conditions more directly determined by the market and with security of employment dependent on how busy the firm is. Here flexibility is quantitative. In addition the firm may employ other still more peripheral groups: temporary workers on short‐term contracts, part‐time workers, trainees on special government schemes. Finally, the firm may depend less on direct employment. It can subcontract to specialised suppliers of services, to self‐employed workers, rely more on out‐sourcing and so on. The overall effect is to rely far more on the market to bring different aspects of production together, rather than to rely on management in a much larger production unit organising everything with its own workforce.

The search for labour flexibility has assumed great importance in most developed countries and has been the catalyst for the deregulation which has occurred, and continues to occur, in the Australian labour market. However, despite this, the question remains whether deregulation of the labour market in Australia is necessary for the attainment of flexibility since the empirical evidence is inconclusive. Industry representatives from the hospitality sector argue that a high degree of labour flexibility is a vital component in being able to meet market demands and achieve a competitive environment. Using data from a study of 435 registered clubs in the Australian state of NSW, areas of labour flexibility which these hospitality enterprises value are examined. Managers’ perceptions of the impact of awards and trade unions on the ability of the enterprises to achieve labour flexibility in a variety of areas are also examined. It was found that while there was a perception by managers that awards and trade unions did have a moderate to low impact or restriction on labour flexibility, the impact was not perceived to be as great as the proponents of deregulation would suggest. It is argued that registered clubs are choosing not to enter into formal enterprise bargaining because of this perceived low/moderate level of award and trade union impact on labour flexibility.

The aim of this article is to explore the current European debate over labour market flexibility. First, it considers lessons from economic theory. The classical consensus considering unemployment to be purely voluntary, the Keynesian consensus introducing the concept of demand deficient involuntary unemployment and finally the neo‐classical consensus returning us to the classical viewpoint of the dominance of real conditions in the labour market. In order to proceed without confusion the article provides a clear working definition of the natural rate of unemployment and its three main components, voluntary unemployment, structural unemployment and involuntary unemployment. It then proceed to analyse each of these main components in detail, illustrating the difference between a free market approach and a European Commission approach to reducing each component of unemployment. The article concludes that the future is dependent on all EU citizens as electors of governments and holders of wages to moderate.

Tries to clarify and to define more strictly some central connotations of popular concepts in the field of personnel policy: mobility and flexibility. Develops a model connecting these concepts within a single theoretical scheme.