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Innovation and job creation in a dual labor market: evidence from Spain

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  • David Giuliodori
  • Rodolfo Stucchi

Abstract

This paper studies the effect of product and process innovations on job creation in the Spanish manufacturing sector over the period 1991--2005. We 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 (i) product and process innovation created jobs, (ii) 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, (iii) after the change in the EPL, innovations increased both the number of temporary and permanent employees, and (iv) while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two years after the innovations.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:ecinnt:v:21:y:2012:i:8:p:801-813
    DOI: 10.1080/10438599.2012.670696
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    Cited by:

    1. Stoetzer Matthias-Wolfgang & Ernst Daniel, 2015. "Arbeitsplatzeffekte von Innovationen auf Unternehmensebene: Eine Meta-Analyse der empirischen Evidenz: Innovative firms and employment – a meta-analysis of the empirical evidence," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(2), pages 173-188, June.
    2. Paola Azar, 2020. "Politics as a determinant of primary school provision The case of Uruguay, 1914-1954," Documentos de Trabajo (working papers) 20-07, Instituto de Economía - IECON.
    3. 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.
    4. Ramiro de Elejalde & David Giuliodori & Rodolfo Stucchi, 2015. "Employment and Innovation: Firm-Level Evidence from Argentina," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(1), pages 27-47, January.
    5. Flavio Calvino & Maria Enrica Virgillito, 2018. "The Innovation†Employment Nexus: A Critical Survey Of Theory And Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 83-117, February.
    6. 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.
    7. Pantea, Smaranda & Sabadash, Anna & Biagi, Federico, 2017. "Are ICT displacing workers in the short run? Evidence from seven European countries," Information Economics and Policy, Elsevier, vol. 39(C), pages 36-44.
    8. Falk Martin, 2015. "Employment Effects of Technological and Organizational Innovations: Evidence Based on Linked Firm-Level Data for Austria," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(3), pages 268-285, June.
    9. Richard Duhautois & Christine Erhel & Mathilde Guergoat-Larivière & Malo Mofakhami & Monika Obersneider & Dominik Postels & José Ignacio Anton & Rafael Muñoz De Bustillo & Fernando Pinto, 2018. "The Employment and Job Quality Effects of Innovation in France, Germany and Spain: Evidence from Firm-Level Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02966011, HAL.
    10. 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.
    11. Rodrigo Ceni, 2014. "Informality and government enforcement in Latin America," Documentos de Trabajo (working papers) 14-21, Instituto de Economía - IECON.
    12. Richard Duhautois & Christine Erhel & Mathilde Guergoat-Larivière & Malo Mofakhami & Monika Obersneider & Dominik Postels & José Ignacio Anton & Rafael Muñoz De Bustillo & Fernando Pinto, 2018. "The Employment and Job Quality Effects of Innovation in France, Germany and Spain: Evidence from Firm-Level Data," Working Papers hal-02613444, HAL.
    13. Swati Mehta, 2016. "Innovation and Employment: A Study of Indian Manufacturing Sector," Millennial Asia, , vol. 7(2), pages 184-206, October.
    14. Baensch Laura & Lanzalot Maria Laura & Lotti Giulia & Stucchi Rodolfo, 2019. "Do Labor Market Regulations Affect the Link between Innovation and Employment? Evidence from Latin America," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(3), pages 1-13, July.
    15. Carlos Bianchi & Hugo Laguna, 2020. "Firm’s innovation strategies and employment: new evidence from Uruguay," Documentos de Trabajo (working papers) 20-06, Instituto de Economía - IECON.
    16. Flavio Calvino, 2016. "Technological Innovation and the Distribution of Employment Growth: a firm-level analysis," LEM Papers Series 2016/37, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. Richard Duhautois & Christine Erhel & Mathilde Guergoat-Larivière & Malo Mofakhami & Monika Obersneider & Dominik Postels & José Ignacio Anton & Rafael Muñoz De Bustillo & Fernando Pinto, 2018. "The Employment and Job Quality Effects of Innovation in France, Germany and Spain: Evidence from Firm-Level Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02613444, HAL.
    18. Lijing Tong & Ningyue Liu & Min Zhang & Liming Wang, 2018. "Employee Protection and Corporate Innovation: Empirical Evidence from China," Journal of Business Ethics, Springer, vol. 153(2), pages 569-589, December.

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    More about this item

    JEL classification:

    • 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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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