Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-22T23:40:07.875Z Has data issue: false hasContentIssue false

Innovation and Job Creation and Destruction : Evidence from Spain

Published online by Cambridge University Press:  17 August 2016

César Alonso-Borrego
Affiliation:
Universidad Carlos III de Madrid
M. Dolores Collado
Affiliation:
Universidad de Alicante
Get access

Summary

In this paper we examine the effect of innovation on job creation and job destruction in Spanish manufacturing. Our empirical analysis is based on firm-level longitudinal data from which we have information on employment and innovation activity. The estimation approach consists of a two-step procedure that takes into account the fact that firms endogenously choose positive, negative or zero growth in employment, in which the selection mechanism is an ordered probit. Our results point out the importance of innovation variables on employment growth: innovative firms create more jobs -and destroy fewer- than non-innovative, and the degree of technological effort has a strong positive effect on net employment creation.

Résumé

Résumé

Dans cet article nous examinons l’impact de l’innovation sur la création et la destruction des emplois dans le secteur manufacturier espagnol. Notre analyse empirique s’appuie sur des données longitudinales au niveau de la firme contenant des informations sur l’emploi et les activités d’innovation. La méthode d’estimation est une procédure en deux étapes qui tient compte du fait que les firmes choisissent de façon endogène une croissance de l’emploi, positive, négative ou nulle, et dans laquelle le mécanisme de sélection est un probit ordonné. Nos résultats soulignent l’importance des variables d’innovation sur la croissance de l’emploi: les firmes innovantes créent plus d’emplois - et en détruisent moins- que les autres; le degré d’effort technologique a un effet fortement positif sur la création nette d’emplois.

Type
II. Labor Economics and Human Capital Investments
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

We thank Raouf Boucekkine, José E. Galdón-Sánchez, and an anonymous referee for helpful comments, and Fundación Empresa Pública for providing the raw data. The first author acknowledges research funding from the Spanish DGI, Grant BEC 2000-0170, and the second author acknowledges research funding from the Spanish DGI, Grant PB98-0979 and from the IVIE.

References

Aguirregabiria, V. and Alonso-Borrego, C. (2001), “Occupational structure, technological innovation, and reorganization of production”, Labour Economics, 8, 4373.Google Scholar
Blanchflower, D.G. and Burgess, S.M. (1996), “Job Creation and Job Destruction in Great Britain in the 1980s”, Industrial and Labor Relations Review, 50, 1738.Google Scholar
Brynjolfsson, E. and Hitt, L.M. (2000), “Beyond Computation: Information Technology, Organizational Transformation and Business Performance”, Journal of Economic Perspectives, 14, 2348.Google Scholar
Davis, S. and Haltiwanger, J. (1992), “Gross Job Creation, Gross Job Destruction, and Employment Reallocation”, Quarterly Journal of Economics 107, 819863.Google Scholar
Davis, S. and Haltiwanger, J. (1999), “Gross Job Flows”, Handbook of Labor Economics, Vol. 3 and 4Google Scholar
Davis, S., Haltiwanger, J. and Schuh, S. (1996), “Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts”, Small Business Economics, 8, 297315.Google Scholar
Díaz-Moreno, C. and Galdón-Sánchez, J.E. (2000), “Job Creation, Job Destruction and the Dynamics of Spanish Firms”, Investigaciones Económicas, 24, 545561.Google Scholar
Dolado, J.J. and Gómez, R. (1995), “Creación y Destrucción de Empleo en el Sector Privado Manufacturero Español: Un Análisis Descriptivo”, Investigaciones Económicas, 19, 371393.Google Scholar
Doms, M., Dunne, T. and Roberts, M. J. (1995), “The Role of Technology Use in the Survival and Growth of Manufacturing Plants”, International Journal of Industrial Organization, 13, 523542.Google Scholar
Frazis, H. (1993), “Selection Bias and the Degree Effect”, Journal of Human Resources, 28, 538554.Google Scholar
Greenan, N. and Guellec, D. (1997), Technological Innovation and Employment Reallocation, mimeo.Google Scholar
Heckman, J.J. (1979), “Sample Selection Bias as an Specification Error”, Econometrica, 47, 153161.Google Scholar
Konings, J. (1995), “Job Creation and Job Destruction in the UK Manufacturing Sector”, Oxford Bulletin of Economic and Statistics, 57, 524.Google Scholar
Lehr, B. and Lichtenberg, F. (2000), “Information Technology and Its Impact on Productivity: Firm-Level Evidence from Government and Private Data Sources”, Canadian Journal of Economics, 32, 335362.Google Scholar
Meghir, C., Ryan, A. and Van Reenen, J. (1996), “Job Creation, Technological Innovation and Adjustment costs: Evidence from a Panel of British Firms”, Annales d’Economie et de Statistique, 41/42, 255274.Google Scholar
Ruano, S. (2000), “Creación y Destrucción Bruta de Empleo en las Empresas Industriales Españolas”, Investigaciones Económicas, 24, 563584.Google Scholar
Van Reenen, J. (1997), “Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms”, Journal of Labor Economics, 15, 255284.Google Scholar
Visco, I. (2000), “The New Economy: Fact or Fiction?”, OECD Observer, June 2000.Google Scholar