SWPS_2018_08_Ciarli_et_al.pdf (2.72 MB)
The effect of R&D growth on employment and self-employment in local labour markets
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posted on 2023-06-09, 21:07 authored by Tommaso CiarliTommaso Ciarli, Alberto Marzucchi, Edgar Salgado, Maria SavonaMaria SavonaThe paper investigates the effects of firms’ investment in Research and Development (R&D) on employment dynamics in the British local labour markets (Travel to Work Areas). We distinguish between local areas characterised by the initial level of routinised employment of the workforce. We implement a instrumenting strategy to address endogeneity issues in the relation between innovation and employment. Our results suggest that increases in R&D investments mainly affect routinised areas, where the employment created is low skilled, concentrated in non-tradable sectors (like transport, construction) and services. A significant share of the jobs created is self-employment, concentrated in the 25-34 age cohort. We qualify the effect of R&D on self-employment by looking at local firms’ dynamics, which suggest that the increase in self-employment is reflected in a higher number of micro-firms. Rather, in non-routinized areas, R&D results in the expected increase in the demand of high-skilled workers and a reduced demand of low-skill employment.
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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- Published
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SPRUPublisher URL
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39.0Place of publication
SussexDepartment affiliated with
- SPRU - Science Policy Research Unit Publications
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University of SussexFull text available
- Yes
Legacy Posted Date
2020-04-20First Open Access (FOA) Date
2020-04-20First Compliant Deposit (FCD) Date
2020-04-20Usage metrics
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