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Localised Technological Progress And Intra-Sectoral Structures Of Employment

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  • Georg Westermanna
  • Holger Schaeferb

Abstract

In this paper we put forward a model that explains a firm's employment growth with the degree of technological efficiency and labour costs. To measure efficiency, we use a non-parametric linear programming method. DEA. The results of empirical analysis of 450 firms in 12 manufacturing sectors confirm that innovative firms experience stronger employment growth. Because the demand growth effect of technological leadership outweighs the factor saving effect, firms which m technological leaders are in most cases the creators of jobs. Technologically backward firms, on the other hand, have few options to compensate their demand loss probably caused by deteriorating competitiveness. Consequently, their employment growth is relatively weak. The employment growth additionally depends on the type of factor combination, i.e. the technological trajectory chosen by an individual firm. The trajectory's effects vary significantly across industries. The effect of labour costs is generally negative. However, technologically leading industries are. less sensitive to increases in labour costs than nature industries.

Suggested Citation

  • Georg Westermanna & Holger Schaeferb, 2001. "Localised Technological Progress And Intra-Sectoral Structures Of Employment," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(1), pages 23-44.
    • Handle: RePEc:taf:ecinnt:v:10:y:2001:i:1:p:23-44
    DOI: 10.1080/10438590100000002
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    References listed on IDEAS

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    1. William J. Baumol & Edward N. Wolff, 1996. "Protracted Frictional Unemployment as a Heavy Cost of Technical Progress," Economics Working Paper Archive wp_179, Levy Economics Institute.
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    Cited by:

    1. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    2. Mehmet Ugur & Sefa Awaworyi Churchill & Edna Solomon, 2018. "Technological Innovation And Employment In Derived Labour Demand Models: A Hierarchical Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 50-82, February.
    3. Ugur, Mehmet & Awaworyi, Sefa & Solomon, Edna, 2016. "Technological innovation and employment in derived labour demand models: A hierarchical meta-regression analysis," MPRA Paper 73557, University Library of Munich, Germany.

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