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Innovation and its Effects on Employment Composition: Microeconomic Evidence from Colombian Firms

Juan Felipe Mejía Mejía () and Yurani Arias Granada

Documentos de Trabajo CIEF from Universidad EAFIT

Abstract: This study analyses the effects of innovation on employment in Colombian firms for the man- ufacturing and service sectors in two different periods: 2007-2010 for the manufacturing industry, and 2010-2011 for the service industry. Based on the theoretical framework proposed by Harri- son et al.(2014), we test this relationship using instrumental variables techniques. Data proceed from The Annual Manufacturing Survey, The Development and Technological Innovation Indus- trial Survey, and The Development and Technological Innovation Services Survey, all of them collected by the Colombian National Administrative Department of Statistics (DANE).Our em- pirical results show that sales growth due to new products positively affects employment growth, and process innovation has not a displacement effect on employment growth. This is robust to different specifications and the inclusion of control variables.

Keywords: Employment Growth; Process Innovation; Product Innovation; Colombian Firms (search for similar items in EconPapers)
JEL-codes: O31 O33 (search for similar items in EconPapers)
Pages: 34
Date: 2014-12-06
New Economics Papers: this item is included in nep-ino and nep-tid
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