Evaluating Innovation and Labour Market Relationships: The Case of Italy

Posted: 20 Jun 2008

See all articles by Luca Pieroni

Luca Pieroni

University of Perugia - Department of Economics

Fabrizio Pompei

University of Perugia - Department of Economics

Date Written: March 2008

Abstract

In this paper the link between labour market flexibility and innovation is analysed paying particular attention to the different technological regimes of economic activities and the different geographical areas of the Italian economy. A dynamic panel data specification is used to assess the endogenous relationship between patents, included as a proxy for innovation, and job turnover and wages, which represent labour market indicators. Our results show that higher job turnover only has a significant and negative impact on patent activities in regional sectors of Northern Italy, while blue and white collar wages have been generally found to have a positive and significant impact on innovation.

Keywords: Labour market flexibility, Innovation, Dynamic panel data, Endogeneity

JEL Classification: R12, J40, O31

Suggested Citation

Pieroni, Luca and Pompei, Fabrizio, Evaluating Innovation and Labour Market Relationships: The Case of Italy (March 2008). Cambridge Journal of Economics, Vol. 32, Issue 2, pp. 325-347, 2008, Available at SSRN: https://ssrn.com/abstract=1148581 or http://dx.doi.org/10.1093/cje/bem032

Luca Pieroni (Contact Author)

University of Perugia - Department of Economics ( email )

via Pascoli, 20
PG 06123 Perugia, 06123
Italy

Fabrizio Pompei

University of Perugia - Department of Economics ( email )

via Pascoli, 20
PG 06123 Perugia, 06123
Italy

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