Innovation and job creation in a dual labor market: Evidence from Spain
AbstractThis paper studies the effect of product and process innovations on the creation of jobs in the Spanish manufacturing sector over the period 1991-2005. We also 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 both product and process innovation created jobs in the Spanish manufacturing sector. Additionally, we find that 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. After the change in the labor regulations, innovations increased both the number of temporary and permanent employees. Interestingly, while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two year after the innovations.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23006.
Date of creation: 31 May 2010
Date of revision:
Product Innovation; Process Innovation; Employment; Temporary Workers.;
Other versions of this item:
- David Giuliodori & Rodolfo Stucchi, 2012. "Innovation and job creation in a dual labor market: evidence from Spain," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 801-813, November.
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-11 (All new papers)
- NEP-EUR-2010-06-11 (Microeconomic European Issues)
- NEP-INO-2010-06-11 (Innovation)
- NEP-LAB-2010-06-11 (Labour Economics)
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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