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Innovation and Job Creation and Destruction . Evidence from Spain

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  • César Alonso-Borrego
  • Dolores Collado

Abstract

In this paper we examine the effect of innovation on job creation and job destruction in Spanish manufacturing. Our empirical analysis is based on firm-level longitudinal data from which we have information on employment and innovation activity. The estimation approach consists of a two-step procedure that takes into account the fact that firms endogenously choose positive, negative or zero growth in employment, in which the selection mechanism is an ordered probit. Our results point out the importance of innovation variables on employment growth : innovative firms create more jobs -and destroy fewer- than non-innovative, and the degree of technological effort has a strong positive effect on net employment creation.

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Bibliographic Info

Article provided by De Boeck Université in its journal Recherches économiques de Louvain.

Volume (Year): 68 (2002)
Issue (Month): 1 ()
Pages: 148-168

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Handle: RePEc:cai:reldbu:rel_681_0148

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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm

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  1. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December.
  2. Costas Meghir & Annette Ryan & John Van Reenen, 1995. "Job creation, technological innovation and adjustment costs," IFS Working Papers W95/06, Institute for Fiscal Studies.
  3. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-84, April.
  4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  5. Steven J. Davis & John Haltiwanger & Scott Schuh, 1993. "Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts," NBER Working Papers 4492, National Bureau of Economic Research, Inc.
  6. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  7. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August.
  8. Bill Lehr & Frank Lichtenberg, 1999. "Information technology and its impact on firm-level productivity: evidence from government and private data sources, 1977-1993," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 335-362, April.
  9. Juan J. Dolado & Ramón Gómez, 1995. "Creación y destrucción de empleo en el sector privado manufacturero español: un análisis descriptivo," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 371-393, September.
  10. Aguirregabiria, Victor & Alonso-Borrego, Cesar, 2001. "Occupational structure, technological innovation, and reorganization of production," Labour Economics, Elsevier, vol. 8(1), pages 43-73, January.
  11. Konings, Jozef, 1995. "Job Creation and Job Destruction in the UK Manufacturing Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 5-24, February.
  12. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
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Cited by:
  1. E. Cefis & Roberto Gabriele, 2005. "Does spatial disaggregation matter in job creation and destruction flows?," Working Papers 05-21, Utrecht School of Economics.
  2. David Giuliodori & Rodolfo Stucchi, 2012. "Innovation and job creation in a dual labor market: evidence from Spain," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 801-813, November.

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