2016/37 | LEM Working Paper Series | ||||||||||||||||
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Technological Innovation and the Distribution of Employment Growth: a firm-level analysis |
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Flavio Calvino |
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Keywords | |||||||||||||||||
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Innovation; Employment growth; Dynamic panel methods; Quantile regression
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JEL Classifications | |||||||||||||||||
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O30; L25; L60; C23; C21; J23
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Abstract | |||||||||||||||||
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This work studies the firm-level relationship between different types
of innovative activities and employment growth rates. Improving on
previous investigations on the topic, it combines a dynamic panel
analysis of the effects of different types of product and process
innovation on employment growth with an outlook on the whole
conditional employment growth distribution. Results show that product
innovation -- especially in terms of good new to the entire market --
has a positive effect on employment growth. This role is likely to be
particularly relevant for both fast-growing and shrinking firms. Process
innovation appears instead to have less clear-cut dynamics,
consistently with existing evidence. Among different types of process
innovation, the introduction of novel auxiliary processes appears to
be more positively linked with employment growth.
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