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Innovation and Job Creation and Destruction : Evidence from Spain

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Author Info
CŽsar ALONSO-BORREGO (Universidad Carlos III de Madrid)
Dolores COLLADO (Universidad de Alicante)

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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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Publisher Info
Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2002024.

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Length: 20
Date of creation: 01 Jun 2002
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Handle: RePEc:ctl:louvre:2002024

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Related research
Keywords: Labour demand; Technological innovation; Sample Selection;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Aguirregabiria, Victor & Alonso-Borrego, Cesar, 2001. "Occupational structure, technological innovation, and reorganization of production," Labour Economics, Elsevier, vol. 8(1), pages 43-73, January. [Downloadable!] (restricted)
  2. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
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  3. Costas Meghir & Annette Ryan & John Van Reenen, 1995. "Job creation, technological innovation and adjustment costs," IFS Working Papers W95/06, Institute for Fiscal Studies.
  4. Costas Meghir & John Van Reenen & Annette Ryan, 1996. "Job Creation, Technological Innovation and Adjustment Costs: Evidence from a Panel of British Firms," Annales d'Economie et de Statistique, ADRES, issue 41-42, pages 12, Janvier-J. [Downloadable!]
  5. 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. [Downloadable!]
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
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  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
  13. 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.
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Cited by:
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  1. Elena Cefis & Roberto Gabriele, 2005. "Does Spatial Disaggregation Matter in Job Creation and Destruction Flows?," LEM Papers Series 2005/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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