Innovative Work Practices, Information Technologies, and Working Conditions : Evidence for France.

We investigate the impact of new work practices and information and communication technologies (ICT) on working conditions in France. We use a unique French dataset providing information on individual workers for the year 1998. New work practices include the use of quality norms, job rotation, collective discussions on work organization, and work time flexibility. Working conditions are captured by occupational injuries as well as indicators of mental strain. We find that individuals working under the new practices face greater mental strain than individuals who do not. They also face a higher probability of work injuries, at least for benign ones. In contrast, our results suggest that ICT contribute to make the workplace more cooperative and to reduce occupational risks and injuries.New work practices; technology; working conditions; occupational injuries; Working Conditions;

Human Resource Management Diffusion and Productivity Imbalances

In this study, we explore spatial variance in management practices and assess its potential contribution to regional imbalances in productivity. The research builds on a growing body of evidence which indicates that differences in management practices can account for a substantial share of cross-country differences in total factor productivity, and which identifies an important role for management practices in explaining differences in productivity between firms in the UK. We contribute to this literature by studying regional variation in HRM and related management practices using workplace-level (i.e. plant-level) data in Britain, taken from the Workplace Employment Relations Survey (WERS). We use these data to map spatial variance in HRM intensity in Britain. We then seek to account for that variance and, in doing so, establish whether regional variance in HRM can help to account for regional variance in productivity. This analysis is complemented by a comparative investigation of equivalent data for France, where levels of productivity and HRM are both higher and less dispersed

Competition, R&D, and the Cost of Innovation.

This paper proposes a model in the spirit of Aghion et al. (2005) that encompasses the magnitude of the impact of competition on R&D according to the cost of the innovation. The effect of competition on R&D is an inverted U-shape. However, the shape is flatter and competition policy is therefore less relevant for innovation when innovations are relatively costly. Intuitively, if innovations are costly for a firm, competitive shocks have to be significant to alter its innovation decisions. Empirical investigations using a unique panel dataset from the Banque de France show that an inverted U-shaped relationship can be clearly evidenced for the largest firms, but the curve becomes flatter when the relative cost of R&D increases. For large costs, the relationship even vanishes. Consequently, in sectors in which innovations are costly, policy changes have to be on a very large scale for an impact to be expected; at the extreme end, in certain sectors, the curve is so at that competition policy is not an appropriate tool for boosting the research effort of firms.Competition ; R&D ; Innovation.

The impact of technological and organizatioanl changes on labor flows. Evidence on French establishments

This paper investigates the effect of organizational and technological changes on job stability of different occupations in France. We first develop a basic matching model with endogenous job destsruction. It provides a structure to the empirical analysis, where we extensively exploit a unique data set on a representative sample of French establishments. The adoption of information technologies is positively correlated to labor flows of blue collar workers while most of the new workplace organizational practices positively influence the managers’ turnover.

Innovation and Advertising: Theory and Evidence.

Advertising and innovation are two engines for firms to escape competition through a better attraction power toward consumers or quality advantage. We propose a model that encompasses both the static and dynamic interactions between R&D, advertising and competitive environment. This model provides two main predictions. First, for a given competitive environment, quality leaders spend more in advertising in order to extract maximal rents; thus, lower costs of ads may favor R&D. Second, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or services. Empirical evidence from a large panel of 59,000 French firms over 1990-2004 supports these two properties.Advertising, Innovation, Competition, Lerner.

Competition, R&D and the cost of innovation

This paper proposes a model in the spirit of Aghion and al. (2005) that relates the magnitude of the impact of competition on R&D to the cost of innovation. The effect of competition on R&D is an inverted U-shape. However, the shape is flatter and competition policy is therefore less relevant for innovation when innovations are relatively costly. Intuitively, if innovations are costly for a firm, competitive shocks have to be significant to alter its innovation decisions. Empirical investigations using a unique panel dataset from the Banque de France show that an inverted U-shaped relationship can be clearly evidenced for the largest firms, but the curve becomes flatter when the relative cost of R&D increases. For large costs, the relationship even vanishes.competition ; R&D ; innovation

Financial Constraints and Foreign Market Entries or Exits: Firm-Level Evidence from France

This paper studies the effect of credit constraints on the expansion and survival of firms in foreign markets. It develops a model in which, lower access to external finance, or reduced internal liquidity, hampers the firm ability to finance the recurrent costs to serve foreign markets and decreases firm survival in foreign markets. Additionally, financial constraints act as a barrier to firm export expansion by decreasing the firm ability to finance the entry costs into new export markets; thus, they push firm to avoid losing destinations. We use a unique longitudinal dataset on French firms that contains information on export destinations of individual firms and allows us to construct various firm-level measures of financial constraints to test these predictions. We obtain two main results. First, credit constraints have a negative effect on the number of newly served destinations. Second, higher probability of exit from the export market is also associated with credit constraints; that is consistent with constraints limiting the financing of recurrent export costs.Firm heterogeneity, financial constraints, trade.

Education, Market Rigidities and Growth.

This paper investigates the effects of the education level, product market rigidities and employment protection legislation on growth. It exploits macro-panel data for OECD countries. For countries close to the technological frontier, education and rigidities are significantly related to TFP growth. The contribution of the interaction between product market regulation and labour market rigidity seems particularly substantial.Productivity ; Growth ; Regulations ; Market Rigidities ; Education

Credit constraints and the cyclicality of R&D investment: Evidence from France

We use a French firm-level data set containing 13,000 firms over the period 1993-2004 to analyze the relationship between credit constraints and firms' R&D behavior over the business cycle. Our main results can be summarized as follows: (i) the share of R&D investment over total investment is countercyclical without credit constraints, but it becomes less countercyclical as firms face tighter credit constraints; (ii) this result is magnified for firms in sectors that depend more heavily upon external finance, or that are characterized by a low degree of asset tangibility ; (iii) in more credit constrained firms, R&D investment share plummets during recessions but does not increase proportionally during upturns; (iv) average R&D investment and productivity growth are more negatively correlated with sales volatility in more credit constrained firms.business cycles ; R&D ; credit constraints ; volatility

Do French Managers Know their Companies? Lessons from the REPONSE Survey

This article explores the potential pitfalls of using surveys on organisational practices, firms technological choices, and workplace relations. Using a generic methodology, one can estimate the degree of truthfulness or consistency of responding executives working in different local units of a single enterprise. Applied to the French REPONSE survey in regard to the enterprises general characteristics, the methodology suggests that (1) executives usually give rather consistent answers to a question handled separately from the others, and (2) that their answers are all the more specific as the questions are simple and fall within the respondents sphere of competency. However, responses to questions on social relations and trade-union representation in the firm are less reliable. Allowing for executives errors, we are led to substantially revise both the level and the rate of change of a number of variables, particularly the weights of different employees unions in firms.Organizational Change, Workplace Relations, Survey Methods