The Job Creation Effect of R&D Expenditures

18 Pages Posted: 3 Jun 2012

See all articles by Francesco Bogliacino

Francesco Bogliacino

National University of Colombia - Department of Economics

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2012

Abstract

In this study we use a unique database covering 25 manufacturing and service sectors for 15 European countries over the period 1996–2005, for a total of 2,295 observations, and apply GMM‐SYS panel estimations of a demand‐for‐labour equation augmented with technology. We find that R&D expenditure – fostering product innovation – have a job‐creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour‐friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon targets.

Suggested Citation

Bogliacino, Francesco and Vivarelli, Marco, The Job Creation Effect of R&D Expenditures (June 2012). Australian Economic Papers, Vol. 51, Issue 2, pp. 96-113, 2012. Available at SSRN: https://ssrn.com/abstract=2073082 or http://dx.doi.org/10.1111/j.1467-8454.2012.00425.x

Francesco Bogliacino (Contact Author)

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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