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Innovation and self-employment
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posted on 2023-06-09, 21:07 authored by Tommaso CiarliTommaso Ciarli, Mattia Di UbaldoMattia Di Ubaldo, Maria SavonaMaria SavonaThe chapter adds to the literature on innovation and employment by looking at the relationship between R&D investment and the rise of alternative work arrangements, particularly self-employment (SE). The chapter first looks at the emergence of nonstandard work, alternative work arrangements and self-employment. General trends of SE in Europe are considered. The contributions that have looked at SE in relation to innovation strategies are surprisingly limited. The empirical contribution is focused on the analysis of local labor markets in the UK (Travel-to-Work Areas, TTWAs), and considers the initial concentration of routinized and non-routinized jobs. The probability that an individual shifts from paid employment to either unemployment or self-employment over the period 2001–2013 as linked to changes in R&D investment in the TTWA is empirically accounted for. Results show that overall R&D has negligible effects on the probability of workers to become self-employed. R&D increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinized and non-routinized workers. Also, a non-negligible increase in the probability that a routinized worker becomes SE as a result of R&D increase is found in low routinized local labor markets but not in highly routinized areas. The chapter sheds new lights on the effect of R&D on employment and self-employment in areas with different degrees of routinization, and adds to the discussion on the more general raise of alternative work arrangements in Europe by disentangling the characteristics of self-employment as resulting from R&D investment.
Funding
TEMPIS: TEchnical change, eMPloyment and Inequality: a Spatial analysis on household and plant data; G1966; ESRC-ECONOMIC & SOCIAL RESEARCH COUNCIL; ES/N011929/1
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Publication status
- Published
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- Accepted version
Publisher
SpringerExternal DOI
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1-20Book title
Handbook of Labor, Human Resources and Population EconomicsPlace of publication
ChamISBN
9783319573656Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Editors
Klaus F ZimmermannLegacy Posted Date
2020-04-20First Compliant Deposit (FCD) Date
2020-04-20Usage metrics
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