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The co-evolution of technology and employment relations: Institutions, innovation and change

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  • Costa, Rodrigo Morem da
  • Horn, Carlos Henrique

Abstract

This paper presents a theoretical model for understanding the co-evolution process between technologies and employment relations institutions. We have named this framework the Evolutionary Industrial Relations System (e-IRS) after both the original concept of an Industrial Relations System (IRS) by Dunlop and the evolutionary theory. The basic ideas of Dunlop's IRS are maintained: actors interacting in contexts, mediated by a shared ideology, to set up a web of rules that regulate employment relations. However, to surpass some of its main limitations, this model is substantially modified according to the evolutionary contributions about: firm behaviour, innovation and institutions. Innovation is seen as the main drive of change in employment relations institutions. The outcome of this process is unique for each country, because any change in employment regulation has to be negotiated between its respective firms, workers and government.

Suggested Citation

  • Costa, Rodrigo Morem da & Horn, Carlos Henrique, 2021. "The co-evolution of technology and employment relations: Institutions, innovation and change," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 313-324.
    • Handle: RePEc:eee:streco:v:58:y:2021:i:c:p:313-324
    DOI: 10.1016/j.strueco.2021.06.003
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    1. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.

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    More about this item

    Keywords

    Evolutionary Industrial Relations System – Innovation – Institutions – Employment Relations;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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