Employment Growth in Europe: The Roles of Innovation, Local Job Multipliers and Institutions

Maarten Goos, Jozef Konings and Marieke Vandeweyer

No 547246, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

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.

Date: 2015
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Published in VIVES discussion paper, 2015/50 , pages 1-40

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Related works:
Working Paper: Employment growth in Europe: the roles of innovation, local job multipliers and institutions (2015)
Working Paper: Employment Growth in Europe: The Roles of Innovation, Local Job Multipliers and Institutions (2015)
Working Paper: Employment Growth in Europe:The Roles of Innovation, Local Job Multipliers and Institutions (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:547246

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