Date of this Version
Functionally flexible systems for organizing work may reduce job instability and insecurity by reducing employers’ reliance on job cuts or contingent work to respond to changes in their environments. Related arguments hypothesize that contingent work allows firms to adjust labor while “buffering” their core of permanent workers from job instability. We find evidence that internally flexible work systems are associated with reduced involuntary and voluntary turnover in manufacturing but that contingent work and involuntary turnover of the permanent workforce are positively related regardless of sector, in contrast to the prediction of the core-periphery hypothesis.
This is the peer reviewed version of the following article: Cappelli, P. and Neumark, D. (2004), External Churning and Internal Flexibility: Evidence on the Functional Flexibility and Core-Periphery Hypotheses. Industrial Relations: A Journal of Economy and Society, 43: 148–182. doi:10.1111/j.0019-8676.2004.00322.x, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/j.0019-8676.2004.00322.x/abstract. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Cappelli, P., & Neumark, D. (2004). External Churning and Internal Flexibility: Evidence on the Functional Flexibility and Core-Periphery Hypotheses. Industrial Relations, 43 (1), 148-182. http://dx.doi.org/10.1111/j.0019-8676.2004.00322.x
Date Posted: 27 November 2017
This document has been peer reviewed.