Work

Innovation and employment

Year: 2015

Type: article

Abstract: Studies find that technological change has contributed to the decline in manufacturing and to persistent unemployment in many advanced economies. While process innovation can be job-destroying, product innovation can imply the emergence of new firms, new sectors, and thus new jobs. But even for process innovation, the final impact on labor demand is shaped by market mechanisms that can compensate for the direct job-destroying impact if market and institutional rigidities do not impede them. Policies should maximize the job-creation effect of product innovation and minimize the direct labor-saving impact of process innovation.

Source: IZA World of Labor

DOI: 10.15185/izawol.154

Author: Marco Vivarelli

Institutions: Università Cattolica del Sacro Cuore, IZA - Institute of Labor Economics

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W1817047804

FWCI: 7.244

Cites: 89

Cited by: 62

Related to: 10