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Employment growth in Europe: the roles of innovation, local job multipliers and institutions

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  • Maarten Goos
  • Joep Konings

Abstract

This paper shows that high-tech employment - broadly defined as all workers in high-tech sectors but also workers with STEM degrees in low-tech sectors - has increased in Europe over the past decade. Moreover, we estimate that every high-tech job in a region creates five additional low-tech jobs in that region because of the existence of a local high-tech job multiplier. The paper also shows how the presence of a local high-tech job multiplier results in convergence between Europe's regions. That is, employment in Europe's lagging regions is becoming more similar to Europe's high-tech hubs. However, our estimates suggest that this convergence is happening at a glacial pace, and some suggestive evidence is presented that lifting several institutional barriers to innovation in Europe's lagging regions would speed up convergence leading to faster high-tech as well as overall employment while also addressing Europe's regional inequalities.
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  • Maarten Goos & Joep Konings, 2015. "Employment growth in Europe: the roles of innovation, local job multipliers and institutions," Working Papers of Department of Economics, Leuven 510231, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:510231
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    2. Luca VOTA, 2022. "Employment Impact Of Firms' Innovation: What Is The Role Of Regional Institutions? Evidence From Italy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-24, June.
    3. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    4. Wojciech Hardy & Roma Keister & Piotr Lewandowski, 2016. "Technology or Upskilling? Trends in the Task Composition of Jobs in Central and Eastern Europe," HKUST IEMS Working Paper Series 2016-40, HKUST Institute for Emerging Market Studies, revised Dec 2016.
    5. Thor Berger & Carl Benedikt Frey, 2016. "Structural Transformation in the OECD: Digitalisation, Deindustrialisation and the Future of Work," OECD Social, Employment and Migration Working Papers 193, OECD Publishing.
    6. Jacques Bughin, 2020. "How Firms will affect the Future of Work," Working Papers TIMES² 2020-035, ULB -- Universite Libre de Bruxelles.
    7. Przytuła Sylwia, 2018. "Global Labor Market Trends and Their Significance for the Future Employees’ Competences," Journal of Intercultural Management, Sciendo, vol. 10(4), pages 5-38, December.

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