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Labor in the network society 179of firm formation and firm dying. As just an indicator, for example, in 1998dozens of prominent Silicon Valley firms announced major lay-offs oftenamounting to more than 10 percent of their total workforce, and yet totalemployment grew by 5 percent. Or, as another indicator of firm churning, ofthe one hundred largest Silicon Valley companies in 1985, only 19 still existedand were in the top hundred in 2000 (Benner, 2002).Rapid skill changes: Debates on the relationship between technologicalchange and skill typically focus on relative levels of deskilling or skillsupgrading over time (Braverman, 1975; Smith, 1994; Murnane et al., 1995;Handel, 2000) or the ways in which the value of skills is shaped by socialstruggles and power relationships (Derber et al., 1990; Gee et al., 1996;Wenger, 1998). More important from the perspective of flexible work,however, is the pace of change in skill requirements. This includes bothdeskilling and skill upgrading tendencies, as well as changing terrains inwhich social struggles over the value of skills are played out. In Silicon Valley,the pace of change in the skills workers need to be effective in their work isvery rapid, and the pace seems to have quickened over time. Short productlife-cycles, constantly shifting technological developments, wholesale shifts inthe core subsectors of the region’s information technology industries (evolvingfrom defense, through integrated circuits, personal computers, Internet,bio-tech and nanotechnologies in the space of a generation) means that theskills that people may have learned in the past can quickly become obsolete.In the words of Michael Curran, director of the NOVA Workforce InvestmentBoard, an award-winning training center and workforce development resourcein the Valley: “The nature of industry in the Valley is constantly changing, andemployers just can’t tell you what skills they’re going to need two years fromnow . . . In the past, the skills that employees had lasted longer, maybe 8–10years. Now a current skill set might be valuable for only 18 months” (interview,June 1999).The tendency toward rapid skills obsolescence in high-tech fields is furtherreflected in national earnings trends in high-tech industries, in which a studyin 1996 (prior to the economic downturn) found that the earnings of engineersand managers actually started to decline for people with 24 years’ experienceor more (see Benner, 2002).Reflexivity in work tasks: In addition to an unstable demand for work andrapidly changing skill requirements, work is becoming more volatile due to theincreasing reflexivity of work tasks (Lash and Urry, 1994). This reflexivityrequires workers at all levels to examine their own work activities in an effortto improve their work processes. The increasing importance of meetingrapidly shifting consumer demands in a range of information commodities and
180 Chris Bennerservices means that a growing proportion of profitability is based on knowledgeand accurate interpretation of shifting consumer tastes and cultural preferences.These interpretative tasks may be specialized amongst a group ofdesign and marketing occupations, but in fact the “social life” of informationin this context requires reflexivity in a large portion of the workforce (Brownand Duguid, 2000). Even in assembly-line, contract manufacturing facilities inthe Valley continuous improvement systems based on input and reflexiveactivities of frontline workers are widespread (Gee et al., 1996).In sum, numerical flexibility and volatility, rapidly changing skill requirements,and reflexivity in work are all aspects of greater flexibility in workactivities. These various types of flexible work practices are largely driven byfactors that operate at a fundamental level in the economy: widespread diffusionof information technology, the need for constant innovation for firms toremain competitive, the nature of competition in information-rich commoditiesand markets, and so on (Shapiro and Varian, 1998; Maskell and Malmberg,1999). These work practices cut across firm boundaries and are shaped byforces that are more diffuse and less malleable than the forces that shapeemployment relations.Flexibility in EmploymentWork is distinct from employment. Employment refers to the nature of the relationshipbetween worker and employer, the processes employers use in directing,motivating, and monitoring workers’ activities, and the nature ofcompensation provided for the activities performed. Flexible employment,therefore, is rapid change in employment contracts with little penalty in time,effort, and performance. Temporary employment, part-time employment, selfemployment,independent contractors, and various compensation schemes thatlink compensation to performance (such as stock options, performance evaluations,and so on) are all issues related to flexible employment, but may ormay not be directly linked to flexible work. For example, temporary employeesat an electronic manufacturing services firm doing routine assembly maybe performing routine work while being engaged in flexible employment.Changes in employment relations are more direct and more visible thanmany of the changes in the nature of work. Employment relations are moredirectly shaped by institutional factors, including the legal and regulatoryframework, the organizational structure and dynamics of firms and theirmanagement practices. The implications of the employment relationship havea much more visible, immediate, and direct impact on the livelihoods of workerssince it fundamentally shapes most people’s primary source of income.There are three dimensions of flexible employment relationships that areparticularly salient in Silicon Valley: (1) the growth in non-standard employ-
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Labor in the network society 179of firm formation and firm dying. As just an indicator, for example, in 1998dozens of prominent Silicon Valley firms announced major lay-offs oftenamounting to more than 10 percent of their total workforce, and yet totalemployment grew by 5 percent. Or, as another indicator of firm churning, ofthe one hundred lar<strong>ge</strong>st Silicon Valley companies in 1985, only 19 still existedand were in the top hundred in 2000 (Benner, 2002).Rapid skill chan<strong>ge</strong>s: Debates on the relationship between technologicalchan<strong>ge</strong> and skill typically focus on relative levels of deskilling or skillsupgrading over time (Braverman, 1975; Smith, 1994; Murnane et al., 1995;Handel, 2000) or the ways in which the value of skills is shaped by socialstruggles and power relationships (Derber et al., 1990; Gee et al., 1996;Wen<strong>ge</strong>r, 1998). More important from the perspective of flexible work,however, is the pace of chan<strong>ge</strong> in skill requirements. This includes bothdeskilling and skill upgrading tendencies, as well as changing terrains inwhich social struggles over the value of skills are played out. In Silicon Valley,the pace of chan<strong>ge</strong> in the skills workers need to be effective in their work isvery rapid, and the pace seems to have quickened over time. Short productlife-cycles, constantly shifting technological developments, wholesale shifts inthe core subsectors of the region’s information technology industries (evolvingfrom defense, through integrated circuits, personal computers, Internet,bio-tech and nanotechnologies in the space of a <strong>ge</strong>neration) means that theskills that people may have learned in the past can quickly become obsolete.In the words of Michael Curran, director of the NOVA Workforce InvestmentBoard, an award-winning training center and workforce development resourcein the Valley: “The nature of industry in the Valley is constantly changing, andemployers just can’t tell you what skills they’re going to need two years fromnow . . . In the past, the skills that employees had lasted lon<strong>ge</strong>r, maybe 8–10years. Now a current skill set might be valuable for only 18 months” (interview,June 1999).The tendency toward rapid skills obsolescence in high-tech fields is furtherreflected in national earnings trends in high-tech industries, in which a studyin 1996 (prior to the economic downturn) found that the earnings of engineersand mana<strong>ge</strong>rs actually started to decline for people with 24 years’ experienceor more (see Benner, 2002).Reflexivity in work tasks: In addition to an unstable demand for work andrapidly changing skill requirements, work is becoming more volatile due to theincreasing reflexivity of work tasks (Lash and Urry, 1994). This reflexivityrequires workers at all levels to examine their own work activities in an effortto improve their work processes. The increasing importance of meetingrapidly shifting consumer demands in a ran<strong>ge</strong> of information commodities and