Technological innovations and the expected demand for skilled labour at the firm level
Martin Falk
No 99-59, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
Abstract:
This paper analyses the link between technological product and processes innovations and expectations about future employment for different types of labour in manufacturing. The empirical model allows for endogeneity of the firm?s innovation decision in the labour demand equations. The system of probit equations is estimated using simulated ML based on 800 West German firms. The empirical evidence for di¤erent measures of technological innovations indicates that introduction of new market products is more important than any other measure of product innovation in determining the expected employment probabilities for homogeneous labour. Furthermore, as expected, technological innovations have the strongest impact on university graduates. Joint implementation of new products and new processes have a stronger impact on the employment expectations of university graduates than product innovations alone. Labour quality and turnover growth are also important factors of employment growth. Finally, tests of the exogeneity assumption of new market products in the labour demand equations can not be rejected.
Keywords: labour demand; product and process innovations; R&D; educational qualification structure; manufacturing (search for similar items in EconPapers)
JEL-codes: J23 L8 O33 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (13)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5272
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