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The impact of foreign technological innovation on domestic employment via the industry mix

Gagliardi, Luisa (2019) The impact of foreign technological innovation on domestic employment via the industry mix. Research Policy, 48 (6). pp. 1523-1533. ISSN 0048-7333

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Identification Number: 10.1016/j.respol.2019.03.005

Abstract

This paper analyses how differences in the industry composition of British local labour markets moderate the impact of foreign technological competition in manufacturing on domestic employment, both overall and across subsamples of workers with different skill levels (high, intermediate and low). To this scope, it exploits both variations across industries in the exposure to the introduction of new technologies, and information on how such industries are combined in shaping the industrial structure of each place. The analysis shows that places that specialise in industries undergoing substantial technological competition due to foreign innovation experience a reduction in total employment that is 4.5% larger than places less exposed based on their initial industry mix. This negative performance is mainly explained by a decrease in the employment opportunities for intermediate-skilled workers. Limited support is found for successful adaptation trajectories over time across British local labour markets.

Item Type: Article
Additional Information: © 2019 Elsevier B.V.
Divisions: Economic History
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HC Economic History and Conditions
JEL classification: R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J21 - Labor Force and Employment, Size, and Structure
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
Date Deposited: 29 Mar 2019 00:13
Last Modified: 14 Aug 2019 23:12
URI: http://eprints.lse.ac.uk/id/eprint/100374

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