KNOWLEDGE SOCIETIES

1. A model of work in the knowledge society KNOWLEDGE SOCIETIES EMERGING TYPES Regulative factors Economic factors Work: skills, contracts, organisation Work in European knowledge societies Emerging types Policy implications DucoBannink

2. A MODEL OF WORK IN THE KNOWLEDGE SOCIETY main WORKS research interest nature of work in the knowledge society do specific patterns emerge? starting point how is the nature of work produced? main mechanism: company strategy, responding to policy context economic context

3. 1. policy context national and branch-level regulation of work 3a. skills skills formation strategy: - internal/external - general/specific 3. company level strategies - skills - contracts - organisation 3b. contracts working time arrangements contractual conditions 3b. organisation value chain restructuring internal restructuring 2. economic context branch and product market characteristics: flexibility and knowledge intensity A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

4. economic context: companies’ preferences market flexibility and demand volatility affects quantitative labour demand affects employees’ dependency from market conditions and employer knowledge intensity and production complexity affects qualitative labour demand affects company dependency from employees’ knowledge and skills A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

5. policy context: companies’ options two main modes of accommodating labour supply and demand coordinated: collective decision-making, high specificity, low flexibility, deep skills uncoordinated: individual decision-making, low specificity, high flexibility, quick innovation A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

6. policy context: companies’ options three main modes of social protection social-democratic public provision, highly inclusive, strong social protection liberal private provision, highly selective, weak social protection corporatism semi-public provision, highly selective, strong social protection NMS and Latin Rim variants more selective and weaker protection A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

7. “regimes”: policy and economy connected specific policies support specific types of economic structure and v.v. e.g. industrial production in low wage countries, product design in high skill countries companies adjust strategies to options ↕ policy context adjusts to economic structure A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

8. increased requirements of flexibility and knowledge intensity in KS but regimes lag behind: regimes of the industrial era structure work in the knowledge society A MODEL OF WORK IN THE KNOWLEDGE SOCIETY

9. 3a. skills strong response to economic context 1. policy context 3. company level strategies - skills - contracts - organisation 3b. contracts strong response to economic context 3b. organisation strong response to political context 2. economic context A MODEL OF WORK IN THE KNOWLEDGE SOCIETY comparisons of same branch/business function in different countries different branch/business function in same country

10. RESULTSWORK IN EUROPEAN KNOWLEDGE SOCIETIESEMERGING TYPES 3. company strategies 3a. skills 3b. contracts 2. economic context • responses to economic context lead to differentiated company strategies on the basis of business function primarily, less branch • IT and design: • high skill requirements, high demand volatility (2) • elaborate ILM’s and strong skill formation (3a), strong worker autonomy in working hours (3b) • production: • low skill requirements, high demand volatility (2) • no career paths and lacking skill formation (3a), low autonomy in WTA (3b)

11. RESULTSWORK IN EUROPEAN KNOWLEDGE SOCIETIESEMERGING TYPES 3c. value chain restructuring: knowledge work in house and operational work outsourced 3c. value chain restructuring: operational work outsourced to these contexts 1. policy context: high social protection and strong labour regulation 1. policy context: low social protection and weak labour regulation 3. company strategies 3. company strategies

12. RESULTSWORK IN EUROPEAN KNOWLEDGE SOCIETIESEMERGING TYPES differences in regulation lead to value chain restructuring or internal reorganisation labour costs: VCR/outsourcing towards CEEC and low-wage countries labour flexibility: VCR/outsourcing towards weaker regulation branches (e.g. Italian clothing production to domestic sector) labour regulation: VCR/outsourcing to China, Africa, etc. import duties: VCR/outsourcing to other trade areas (e.g. to Middle America for U.S. market) next to regulation-directed outsourcing also some economic outsourcing: market proximity note: outsourced low cost work may be upgraded over time; required stronger labour regulation and skill investments are produced privately

13. RESULTSWORK IN EUROPEAN KNOWLEDGE SOCIETIESEMERGING TYPES • gradual convergence of dualised European industrial production and labour market? or business function specialisation? • low wage/low skill-regimes in new members states • increased employment • highly flexible production and weak worker time autonomy • but some gradual upgrading of knowledge intensity of production • high wage/high skill-regimes in old member states • decreasing production employment • maintained knowledge intensive employment • also highly flexible production, but stronger worker time autonomy • danger of further labour shedding, also highly qualified labour

14. POLICY IMPLICATIONS gradual convergence of dualised European industrial production and labour market? or business function specialisation? main question for European knowledge society policies >> towards skill formation in corporatist, branch- or firm-bound strategies? >> towards individualised activation as in Lisbon strategy? >> towards retrenchment of social protection and deregulation of labour? >> towards stronger labour regulation and increased social protection? next report of WORKS WP-team addresses these questions