EconPapers    
Economics at your fingertips  
 

Economic complexity and jobs: an empirical analysis

Antonis Adam (), Antonios Garas and Athanasios Lapatinas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the impact of economic complexity on the labour market using annual data on OECD countries for the period 1985-2008 and averaged data over the period 1990-2010 for 74 developed and developing countries with a large number of controls. We show that moving to higher levels of economic sophistication leads to less unemployment and more employment, showing that economic complexity does not induce job loss. Our findings remain robust across alternative econometric specifications. Furthermore, we place the spotlight on the link between products’ embodied knowledge (sophistication) and labour market outcomes at the micro-level. We build a product-level index that attaches a product to the average level of unemployment (or employment) in the countries that export it. With this index, we illustrate how the development of sophisticated products is associated with changes in the labour market and show that the economic sophistication of an economy captures information about the economy’s job creation and destruction.

Keywords: economic complexity; product sophistication; unemployment; employment (search for similar items in EconPapers)
JEL-codes: C13 J01 O31 (search for similar items in EconPapers)
Date: 2019-02
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/92401/1/MPRA_paper_92401.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92401

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2020-05-24
Handle: RePEc:pra:mprapa:92401