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Effects of innovation on employment in Latin America

Gustavo Crespi () and Ezequiel Tacsir ()

No 2013-001, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This study examines the impact of process and product innovation on employment growth and composition in Argentina, Chile, Costa Rica, and Uruguay using micro data from innovation surveys. Based on the model put forward by Harrison et al. (1998), employment growth is related to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that compensation effects are pervasive and that the introduction of new products is associated with employment growth at the firm level. No evidence of displacement effects due to the introduction of product innovations was observed. With respect to the impact of innovation on employment composition, there is scant evidence of a skill bias, although product innovation is more complementary to skilled than to unskilled labour.

Keywords: innovation; employment; developing countries; Latin America; innovation surveys (search for similar items in EconPapers)
JEL-codes: O12 O14 O31 O33 O40 J21 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ino, nep-knm and nep-lam
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Related works:
Journal Article: Effects of innovation on employment in Latin America (2019) Downloads
Working Paper: Effects of innovation on employment in Latin America (2011) Downloads
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