Innovations and Labour Market Institutions: An Empirical Analysis of the Italian Case in the middle 90’s

Luca Pieroni () and Fabrizio Pompei ()

No 12/2005, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia, Finanza e Statistica

Abstract: In this paper a dynamic panel data specification is used to assess the relationship between labour market flexibility and innovation activities by distinguishing different technological regimes of activities and geographical areas of the Italian economy. In order to estimate the previous relationship, regional patents are included as a proxy of the innovation, while job turnover and wages represent labour market indicators. The results show that higher job turnover has a significant and negative impact on patent activities only in regional sectors of Northern Italy, while a positive and significant impact of blue and white collar wages has been generally found.

Keywords: Labour market flexibility; Innovation; Dynamic panel data; Endogeneous relationship. (search for similar items in EconPapers)
JEL-codes: R12 J40 O31 (search for similar items in EconPapers)
Date: 2005-06-10
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