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Labor Shortage and Innovation
| Content Provider | Scilit |
|---|---|
| Author | Horbach, Jens Rammer, Christian |
| Copyright Year | 2020 |
| Description | Journal: SSRN Electronic Journal Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper addresses this question using panel data from three waves (2017 to 2019) of the German innovation survey. We measure labor shortage by job openings that could not be filled at all, not with the required skills or only with significant delay, distinguishing different skill levels. We analyze whether labor shortage resulted in stopping or abandoning of innovation projects. Endogeneity issues are tackled by instrumental variable estimation techniques. Our results show that innovative firms are more likely to be subject to skill shortage, whereas skill shortage induces the cancellation of innovation projects. Effects are stronger for labor shortage related to professional occupations and less for academic qualifications. |
| Related Links | https://www.econstor.eu/bitstream/10419/214640/1/1691198978.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3545776 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3545776 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2020-01-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Public Administration Community Innovation Survey Labor Shortage Probit Instrumental Variable Estimation |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
