Job creation in business services: innovation, demand, polarisation

Francesco Bogliacino, Matteo Lucchese and Mario Pianta

No 2011-04, JRC Working Papers on Corporate R&D and Innovation from Joint Research Centre

Abstract: The patterns and mechanisms of job creation in business services are investigated in this article by considering the role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an empirical test is carried out with parallel analyses on a group of selected business services, on other services and on manufacturing sectors, considering six major European countries over the period 1996-2007. Within technological activities, a distinction is made between those supporting either technological competitiveness, or cost competitiveness. Demand variables allow identifying the special role of intermediate demand. Job creation in business services appears to be driven by efforts to expand technological competitiveness and by the fast growing intermediate demand coming from other industries; conversely, process innovation leads to job losses and wage growth has a negative effect that is lower than in other industries. Business services show an increasingly polarised employment structure.

Keywords: Business Services; Innovation; Employment. (search for similar items in EconPapers)
JEL-codes: J20 J23 O30 O33 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-08
New Economics Papers: this item is included in nep-eur, nep-ino, nep-knm, nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Job creation in business services:Innovation, Demand, Polarisation (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:wpaper:201104

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