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Innovation and job creation in a dual labor market: Evidence from Spain

Rodolfo Stucchi () and David Giuliodori ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the effect of product and process innovations on the creation of jobs in the Spanish manufacturing sector over the period 1991-2005. We also use a change in the Employment Protection Legislation (EPL) in 1997 to study the effect of innovations on permanent and temporary workers before and after that change. We find that both product and process innovation created jobs in the Spanish manufacturing sector. Additionally, we find that before the change in the EPL in 1997 innovations did not affect the number of permanent workers and all the increase in employment was explained by the increase in the number of temporary workers. After the change in the labor regulations, innovations increased both the number of temporary and permanent employees. Interestingly, while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two year after the innovations.

Keywords: Product Innovation; Process Innovation; Employment; Temporary Workers. (search for similar items in EconPapers)
JEL-codes: J21 J38 O31 L60 (search for similar items in EconPapers)
Date: 2010-05-31
New Economics Papers: this item is included in nep-eur, nep-ino and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/23006/1/MPRA_paper_23006.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/31215/1/MPRA_paper_31215.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/31297/1/MPRA_paper_31297.pdf revised version (application/pdf)

Related works:
Journal Article: Innovation and job creation in a dual labor market: evidence from Spain (2012) Downloads
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