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Innovations and Labour Market Institutions: An Empirical Analysis of the Italian Case in the middle 90’s

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  • Luca Pieroni
  • Fabrizio Pompei

Abstract

In this paper a dynamic panel data specification is used to assess the relationship between labour market flexibility and innovation activities by distinguishing different technological regimes of activities and geographical areas of the Italian economy. In order to estimate the previous relationship, regional patents are included as a proxy of the innovation, while job turnover and wages represent labour market indicators. The results show that higher job turnover has a significant and negative impact on patent activities only in regional sectors of Northern Italy, while a positive and significant impact of blue and white collar wages has been generally found.

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Bibliographic Info

Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 12/2005.

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Date of creation: 10 Jun 2005
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Handle: RePEc:pia:wpaper:12/2005

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Related research

Keywords: Labour market flexibility; Innovation; Dynamic panel data; Endogeneous relationship.;

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References

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  1. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
  2. Kitson, Michael & Martin, Ron & Wilkinson, Frank, 2000. "Labour Markets, Social Justice and Economic Efficiency," Cambridge Journal of Economics, Oxford University Press, vol. 24(6), pages 631-41, November.
  3. Amin, Ash & Wilkinson, Frank, 1999. "Learning, Proximity and Industrial Performance: An Introduction," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 121-25, March.
  4. Paci Raffaele & Usai Stefano, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
  5. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(01), pages 51-73, June.
  6. Luca Pieroni & Fabrizio Pompei, 2006. "Localizzazione geografica delle innovazioni e mercato del lavoro," Rivista di Politica Economica, SIPI Spa, vol. 96(2), pages 277-328, March-Apr.
  7. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
  8. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
  9. Asheim, Bjorn T. & Coenen, Lars, 2005. "Knowledge bases and regional innovation systems: Comparing Nordic clusters," Research Policy, Elsevier, vol. 34(8), pages 1173-1190, October.
  10. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
  11. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-92, June.
  12. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, vol. 25(3), pages 451-478, May.
  13. Acemoglu, D, 1996. "Technology, Unemployment and Efficiency," Working papers 96-26, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. Jonathan Michie & Maura Sheehan, 2003. "Labour market deregulation, 'flexibility' and innovation," Cambridge Journal of Economics, Oxford University Press, vol. 27(1), pages 123-143, January.
  15. Flaig, Gebhard & Stadler, Manfred, 1994. "Success Breeds Success. The Dynamics of the Innovation Process," Empirical Economics, Springer, vol. 19(1), pages 55-68.
  16. Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 603-25, October.
  17. Arnott, Richard J & Stiglitz, Joseph E, 1985. "Labor Turnover, Wage Structures, and Moral Hazard: The Inefficiency of Competitive Markets," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 434-62, October.
  18. Acemoglu, Daron, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 445-64, July.
  19. Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 83-117.
  20. repec:fth:harver:1473 is not listed on IDEAS
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Citations

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Cited by:
  1. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  2. Stefano Herzel, Stefano & Marco Nicolosi, Marco & Starica, Catalin, 2010. "The cost of sustainability on optimal portfolio choices," Sustainable Investment and Corporate Governance Working Papers 2010/15, Sustainable Investment Research Platform.
  3. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
  4. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  6. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

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