Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202308
Authors: 
Kancs, d'Artis
Siliverstovs, Boriss
Year of Publication: 
2019
Series/Report no.: 
JRC Working Papers in Economics and Finance 2019/2
Abstract: 
We provide a novel evidence about the innovation-employment nexus by decomposing it by R&D intensity in a continuous setup and relaxing the linearity assumption. Using a large international firm-level panel data set for OECD countries and employing a flexible semi-parametric method – the generalised propensity score – allows us to recover the full functional relationship between the R&D-driven innovation and firm employment as well as address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results confirm that the relationship between innovation and employment entails important non-linearities responsible for significant differences in employment response to innovation at different R&D intensity levels.
Subjects: 
R&D investment
employment
propensity score
firm-level data
JEL: 
C14
C21
F23
J20
J23
O30
O32
O33
Persistent Identifier of the first edition: 
ISBN: 
978-92-76-00041-9
Document Type: 
Working Paper

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