Eurasian Business Review

, Volume 8, Issue 1, pp 13–32 | Cite as

Technological change and employment: is Europe ready for the challenge?

  • Mariacristina Piva
  • Marco Vivarelli
Original Paper


The aim of this paper is twofold. On the one hand, the economic insights on the employment impact of technological change are discussed covering both classical theories and updated 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 labor-friendly impact of R&D expenditures (mainly related to product innovation) is found; yet, this positive employment effect appears to be entirely due to medium and high-tech sectors, while no effect can be detected in low-tech industries; (2) capital formation is found to be negatively related to employment; this outcome suggests a possible labor-saving effect due to the embodied technological change incorporated in gross investment (mainly related to process innovation).


Technological change Employment Sectoral analysis EU 

JEL Classification




We would like to thank two anonymous referees for their detailed comments and useful suggestions.


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Copyright information

© Eurasia Business and Economics Society 2018

Authors and Affiliations

  1. 1.Università Cattolica del Sacro CuorePiacenzaItaly
  2. 2.Università Cattolica del Sacro CuoreMilanItaly
  3. 3.UNU-MERITMaastrichtThe Netherlands
  4. 4.IZABonnGermany

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