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The Labour Demand and the Innovation Behaviour of Firms / Die Arbeitsnachfrage und das Innovationsverhalten von Unternehmen: An Empirical Investigation for West German Manufacturing Firms / Eine empirische Untersuchung für das westdeutsche Verarbeitende Gewerbe

Author

Listed:
  • Rottmann Horst
  • Ruschinski Monika

    (ifo Institut für Wirtschaftsforschung, Poschingerstr. 5, D-81679 München.)

Abstract

From a theoretical point of view the introduction of process and product innovations has contrary impacts on labour demand even at the level of the innovating firm. We present an empirical study of the relationship between labour demand and innovation behaviour using the Ifo Business Panel for the West German manufacturing sector in the years 1980-1992. A dynamic labour demand function is estimated by the method of instrumental variables. Our main findings can be summarized as follows: The labour demand at the firm level is mainly affected by wages, user costs of capital and the demand side. The impact of product innovations on employment is significantly positive. Finally, we find no empirical evidence for the often-quoted statement that the introduction of process innovations destroys jobs in the enterprise.

Suggested Citation

  • Rottmann Horst & Ruschinski Monika, 1998. "The Labour Demand and the Innovation Behaviour of Firms / Die Arbeitsnachfrage und das Innovationsverhalten von Unternehmen: An Empirical Investigation for West German Manufacturing Firms / Eine empir," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 217(6), pages 741-752, December.
    • Handle: RePEc:jns:jbstat:v:217:y:1998:i:6:p:741-752
    DOI: 10.1515/jbnst-1998-0606
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    Cited by:

    1. Klaus Rennings & Thomas Zwick, 2002. "Employment Impact Of Cleaner Production On The Firm Level: Empirical Evidence From A Survey In Five European Countries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 319-342.

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