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Job creation in business services:Innovation, Demand, Polarisation

  • Francesco Bogliacino

    ()

    (European Commission)

  • Matteo Lucchese

    ()

    (Università di Urbino "Carlo Bo")

  • Mario Pianta

    ()

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

The patterns and mechanisms of job creation in business services are investigated in this article by considering the role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an empirical test is carried out with parallel analyses on a group of selected business services, on other services and on manufacturing sectors,considering six major European countries over the period 1996-2007. Within technological activities a distinction is made between those supporting either technological competitiveness, or cost competitiveness. Demand variables allow identifying the special role of intermediate demand. Job creation in business services appears to be driven by efforts to expand technological competitiveness and by the fast growing intermediate demand coming from other industries; conversely, process innovation leads to job losses and wage growth has a negative effect that is lower that in other industries. Business services show an increasingly polarised employment structure.

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File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_11_07.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 1107.

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Length: 28 pages
Date of creation: 2011
Date of revision: 2011
Handle: RePEc:urb:wpaper:11_07
Contact details of provider: Web page: http://www.econ.uniurb.it/

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