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Effects of innovation on employment in Latin America

Author

Listed:
  • Crespi, Gustavo
  • Tacsir, Ezequiel
Abstract
This study examines the impact of process and product innovation on employment growth across four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro data from innovation surveys. Specifically, we relate employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that that compensation effects are prevalent, and the introduction of new products is associated with employment growth at the firm level. Specifically, we find that for the manufacturing firms as a whole, the introduction of process innovations only affects the employment growth in the countries case of Chile. At the same time, we observe no evidence of displacement effects due to the introduction of product innovations. In fact, the observed compensation effects resulting from the introduction of new products imply, in turn, employment growth even when the replacement of old products is taken into account.

Suggested Citation

  • Crespi, Gustavo & Tacsir, Ezequiel, 2011. "Effects of innovation on employment in Latin America," MPRA Paper 35429, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35429
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    References listed on IDEAS

    as
    1. Sandra E. Black & Lisa M. Lynch, 2004. "What's driving the new economy?: the benefits of workplace innovation," Economic Journal, Royal Economic Society, vol. 114(493), pages 97-116, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation; Employment; Developing countries; Latin America; Innovation surveys;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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