Innovation and Its Effects on Employment Composition: Microeconomic Evidence from Colombian Firms

35 Pages Posted: 7 Dec 2014 Last revised: 3 Jan 2015

See all articles by Juan-Felipe Mejia

Juan-Felipe Mejia

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Yurani Arias Granada

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: December 6, 2014

Abstract

This study analyses the effects of innovation on employment in Colombian firms for the manufacturing and service sectors in two different periods: 2007-2010 for the manufacturing industry, and 2010-2011 for the service industry. Based on the theoretical framework proposed by Harrison et al. (2014), we test this relationship using instrumental variables techniques. Data proceed from The Annual Manufacturing Survey, The Development and Technological Innovation Industrial Survey, and The Development and Technological Innovation Services Survey, all of them collected by the Colombian National Administrative Department of Statistics (DANE). Our empirical results show that sales growth due to new products positively affects employment growth, and process innovation has not a displacement effect on employment growth. This is robust to different specifications and the inclusion of control variables.

Keywords: Employment Growth, Process Innovation, Product Innovation, Colombian Firms

JEL Classification: O31, O33

Suggested Citation

Mejia, Juan-Felipe and Arias Granada, Yurani, Innovation and Its Effects on Employment Composition: Microeconomic Evidence from Colombian Firms (December 6, 2014). Center for Research in Economics and Finance (CIEF), Working Papers, No. 14-20, Available at SSRN: https://ssrn.com/abstract=2534830 or http://dx.doi.org/10.2139/ssrn.2534830

Juan-Felipe Mejia (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Yurani Arias Granada

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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