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The Employment Consequences of Technological Advance, Demand and Labor Costs in 16 German Industries


  • Zimmermann, Klaus F


The decline of employment in German manufacturing industries is often attributed to technological advance, declines in demand and to increases in labor costs. Using business survey data, the study evaluates the relative importance of these determinants in 16 industries. The empirical finding of a series of probit estimates is that in most cases demand plays a dominant role, in some cases technological progress is an important factor, but in not case are labor costs a decisive determinant. Results may depend on the short-run nature of the analysis.

Suggested Citation

  • Zimmermann, Klaus F, 1991. "The Employment Consequences of Technological Advance, Demand and Labor Costs in 16 German Industries," Empirical Economics, Springer, vol. 16(2), pages 253-266.
  • Handle: RePEc:spr:empeco:v:16:y:1991:i:2:p:253-66

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    References listed on IDEAS

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    Cited by:

    1. repec:bla:jecrev:v:68:y:2017:i:2:p:200-216 is not listed on IDEAS
    2. Jacques Mairesse, 2008. "Employment, innovation, and productivity: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press, vol. 17(4), pages 813-839, August.
    3. Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2015. "The Employment Impact of Innovation: Evidence from European Patenting Companies," DISCE - Quaderni dell'Istituto di Politica Economica ispe0075, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2014. "Technology and employment: the job creation effect of business R&D," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 126(3), pages 239-264.
    5. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: a firm-level analysis," Working Papers 2011/20, Institut d'Economia de Barcelona (IEB).
    6. Rennings, Klaus & Ziegler, Andreas & Zwick, Thomas, 2001. "Employment changes in environmentally innovative firms," ZEW Discussion Papers 01-46, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Peters, Bettina, 2004. "Employment Effects of Different Innovation Activities: Microeconometric Evidence," ZEW Discussion Papers 04-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Sascha O. Becker & Klaus Wohlrabe, 2008. "European Data Watch: Micro Data at the Ifo Institute for Economic Research – The “Ifo Business Survey”, Usage and Access," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 128(2), pages 307-319.
    9. Felix FitzRoy & Michael Funke, 1994. "Real wages, investment and employment: New evidence from West German sectoral data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(2), pages 258-272, June.
    10. Van Roy, Vincent & Vertesy, Daniel & Vivarelli, Marco, 2015. "Innovation and Employment in Patenting Firms: Empirical Evidence from Europe," IZA Discussion Papers 9147, Institute for the Study of Labor (IZA).
    11. Klaus Abberger & Sascha Becker & Barbara Hofmann & Klaus Wohlrabe, 2007. "Mikrodaten im ifo Institut für Wirtschaftsforschung – Bestand, Verwendung und Zugang," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 1(1), pages 27-42, June.
    12. Ádám Bereck, 2013. "Output and Staff Number in Hungarian Manufacturing before, during and after the Crisis," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 9(02), pages 15-21.
    13. Stefan Kipar, 2012. "Determinants of Firm Innovation - Evidence from German Panel Data," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 45, November.
    14. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "Job Creation Effects of R&D Expenditures: Are High-tech Sectors the Key?," JRC Working Papers on Corporate R&D and Innovation 2011-10, Joint Research Centre (Seville site).
    15. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2011. "R&D and Employment: Some Evidence from European Microdata," IZA Discussion Papers 5908, Institute for the Study of Labor (IZA).
    16. repec:iab:iabmit:v:33:i:4:p:594-608 is not listed on IDEAS

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