Innovations, Wages and Demand for Heterogeneous Labour: New Evidence from a Matched Employer-Employee Data-Set
AbstractThis paper examines the impact of innovations and wages on the demand for heterogeneous labour. Based on matched data from the IAB-establishment panel survey and the files of the employment statistics register for the year 1995, input shares derived from a generalised Leontief cost function are estimated for six qualification groups (blue and white collar workers stratified into unskilled, skilled and highly-skilled employees) in the West German production industries. With the exception of highly skilled blue collar workers, innovations have a positive and significant effect on labour demand for all groups, with an estimated relative change of the conditional labour demand ranging between 3.2% and 6.3%. Between white collar workers as well as between unskilled and skilled blue collar workers, we find an increasing positive impact of innovations on labour demand with qualification level. Skilled and highly skilled employees are found to be substitutes for the unskilled. This result implies that more flexible wages of the unskilled would reduce the unemployment of this group. Finally, our data is not consistent with separability of blue-collar employees from white collar employees, there is weak evidence that skilled and highly skilled blue collar employees can be aggregated.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 112.
Length: 27 pages
Date of creation: Feb 2000
Date of revision:
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Find related papers by JEL classification:
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-02-28 (All new papers)
- NEP-DEV-2000-02-28 (Development)
- NEP-INO-2000-02-28 (Innovation)
- NEP-LAB-2000-02-28 (Labour Economics)
- NEP-TID-2000-02-28 (Technology & Industrial Dynamics)
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.:
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