Template-Type: ReDIF-Paper 1.0
Author-Name: Mariacristina Piva
Author-X-Name-First: Mariacristina
Author-X-Name-Last: Piva
Author-Email: mariacristina.piva@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Marco Vivarelli
Author-X-Name-First: Marco
Author-X-Name-Last: Vivarelli
Author-Email: marco.vivarelli@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica - UNU-MERIT, Maastricht, The Netherlands and IZA, Bonn, Germany
Title: The employment impact of R&D expenditures and capital formation
Abstract: The aim of this paper is twofold. On the one hand, the economic insights about the employment impact of technological change are disentangled starting from the classical economists to nowadays theoretical and empirical analyses. On the other hand, an empirical test is provided; in particular, longitudinal data - covering manufacturing and service sectors over the 1998-2011 period for 11 European countries - are used to run GMM-SYS and LSDVC estimates. Two are the main results: 1) a significant labour-friendly impact of R&D expenditures (mainly related to product innovation) is found; yet, this positive employment effect appears to be entirely due to the medium-and high-tech sectors, while no effect can be detected in the low-tech industries; 2) capital formation is found to be negatively related to employment; this outcome points to a possible labour-saving effect due to the embodied technological change incorporated in gross investment (mainly related to process innovation).
Length: 43
Creation-Date: 2017-01
File-URL: http://istituti.unicatt.it/politica-economica-ISPE
0078.pdf
File-Format: Application/pdf
File-Function: First version, 2017
Number: ispe0078
Classification-JEL: O33
Keywords: technological change, employment, sectoral analysis, EU
Handle: RePEc:ctc:serie5:ispe0078