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 VIVES - Research Centre for Regional Economics from KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics

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
New Economics Papers: this item is included in nep-ino and nep-ure
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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:vivwps:547246

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