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Innovation, employment and market structure: firm level evidence from Turkey

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  • Başak Dalgıç

    (Hacettepe University)

  • Burcu Fazlıoğlu

    (TOBB University of Economics and Technology)

  • Aytekin Güven

    (Abant Izzet Baysal University)

Abstract

This paper aims to examine the impact of innovation activities on employment for Turkish manufacturing industry with a special focus on market structures. We utilize an endogenous switching technique which accounts for selection bias issues and endogeneity. We show that there exist employment gains from product innovations only for firms operating in highly concentrated sectors, whereas we cannot find evidence for low concentration sectors. Our results point out a negative association between process innovation and employment only for firms operating in high concentration sectors.

Suggested Citation

  • Başak Dalgıç & Burcu Fazlıoğlu & Aytekin Güven, 2023. "Innovation, employment and market structure: firm level evidence from Turkey," Empirical Economics, Springer, vol. 65(3), pages 1385-1407, September.
    • Handle: RePEc:spr:empeco:v:65:y:2023:i:3:d:10.1007_s00181-023-02382-1
    DOI: 10.1007/s00181-023-02382-1
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    More about this item

    Keywords

    Innovation; Employment; Market structure; Concentration;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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