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Technological Innovations and Labor Demand Using Linked Firm-Level Data

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Handbook of Labor, Human Resources and Population Economics

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Abstract

This chapter illustrates how the relationship between technological innovations and labor demand can be analyzed in a cross-country setting by use of harmonized, multilinked, and microaggregated firm-level data. An investigation of the relationship between new market product (market novelty) sales and labor demand (employment) derived from a two-output cost function is used as an example. The example is embedded in recent literature and discussions on data availability, data limitations, and possible estimation methods. Fixed effects estimations reveal that the sales of market novelties have a significant impact on relative employment in the representative manufacturing firm. In contrast, employment in the representative service firm does not benefit from new market products but rather from the intensity with which information and communication technology innovations are used (in this case the proportion of broadband internet connected employees). The results coincide with those in the firm-level literature, but the approach allows inclusion of a broader variety of firm characteristics, such as firm size, international experience, and ICT intensity.

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Authors and Affiliations

  1. Department of Business and IT, USN School of Business, Bø, Norway

    Martin Falk

  2. University of Iceland, Reykjavík, Iceland

    Eva Hagsten

Authors
  1. Martin Falk
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  2. Eva Hagsten
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Correspondence to Martin Falk .

Editor information

Editors and Affiliations

  1. UNU-MERIT & Princeton University, Maastricht, The Netherlands

    Klaus F. Zimmermann

Section Editor information

  1. Department of Economic Policy, Università Cattolica del Sacro Cuore, Milano, Italy

    Marco Vivarelli

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Falk, M., Hagsten, E. (2020). Technological Innovations and Labor Demand Using Linked Firm-Level Data. In: Zimmermann, K. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_170-1

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  • DOI: https://doi.org/10.1007/978-3-319-57365-6_170-1

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  • Print ISBN: 978-3-319-57365-6

  • Online ISBN: 978-3-319-57365-6

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