Knowledge jobs and firm capabilities

Eric Mengus and Tomasz Michalski

No 18863, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Specialized knowledge-generating jobs comprise close to one fifth of employment and one fourth of the wage bill in French manufacturing firms. They are positioned mostly high in the firm hierarchy and horizontally aside upper-tier managers, but are not managerial in nature. We provide evidence that such knowledge jobs lead not only to higher quantity productivity, as previously documented for production hierarchies, but also to higher firm capabilities to affect demand by expanding the range of product characteristics of the firm along different dimensions. Higher shares of knowledge jobs increase within-firm knowledge generation measured by self-reported innovation and lead to improved firm performance as measured by revenue productivity, markups and profitability..

JEL-codes: D23 D24 D83 J24 L20 M1 M5 (search for similar items in EconPapers)
Date: 2024-02
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