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Innovation and job creation in a dual labor market: evidence from Spain

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  • David Giuliodori
  • Rodolfo Stucchi

Abstract

This paper studies the effect of product and process innovations on job creation in the Spanish manufacturing sector over the period 1991--2005. We use a change in the employment protection legislation (EPL) in 1997 to study the effect of innovations on permanent and temporary workers before and after that change. We find that (i) product and process innovation created jobs, (ii) before the change in the EPL in 1997 innovations did not affect the number of permanent workers and all the increase in employment was explained by the increase in the number of temporary workers, (iii) after the change in the EPL, innovations increased both the number of temporary and permanent employees, and (iv) while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two years after the innovations.

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File URL: http://hdl.handle.net/10.1080/10438599.2012.670696
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 21 (2012)
Issue (Month): 8 (November)
Pages: 801-813

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Handle: RePEc:taf:ecinnt:v:21:y:2012:i:8:p:801-813

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References

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  1. César Alonso-Borrego & M. Dolores Collado, 2001. "Innovation And Job Creation And Destruction: Evidence From Spain," Statistics and Econometrics Working Papers ws013824, Universidad Carlos III, Departamento de Estadística y Econometría.
  2. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers.
  3. Harrison, Rupert & Jaumandreu Balanzo, Jordi & Mairesse, Jacques & Peters, Bettina, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data From Four European Countries," ZEW Discussion Papers 08-111, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
  5. Jose Miguel Benavente & Rodolfo Lauterbach, 2008. "Technological innovation and employment: complements or substitutes?," European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 318-329.
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Cited by:
  1. Ramiro De Elejalde & David Giuliodori & Rodolfo Stucchi, 2013. "Employment and innovation: Firm level evidence from Argentina," ILADES-Georgetown University Working Papers inv291, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  2. repec:idb:brikps:60458 is not listed on IDEAS
  3. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, University of Applied Sciences Jena, Department of Business Administration.
  4. repec:idb:brikps:58758 is not listed on IDEAS

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