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Job creation, technological innovation and adjustment costs

Meghir, Costas, Ryan, Annette and Van Reenen, John ORCID: 0000-0001-9153-2907 (1996) Job creation, technological innovation and adjustment costs. Annales d'economie et de Statistique, 41/42. pp. 255-274. ISSN 0769-489X

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This paper examines the impact of technological change on net job creation. Innovation (by a company or its rivals) can affect many dimensions of a firm’s employment decision and we distinguish between three: changes due to higher output, changes due to shifting factor intensities and changes in the adjustment costs of firms. The parameter estimates from a strucural labour demand model suggest that firms with a higher stock of innovations face lower adjustment costs than less technologically progressive firms. There is no significant capital deepening effect from innovation, nor spillover effects on employment from innovations elsewhere in the firm’s industry.

Item Type: Article
Official URL:
Additional Information: © 1996 ADRES
Divisions: Economics
Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
T Technology > T Technology (General)
JEL classification: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited: 27 Apr 2007
Last Modified: 15 May 2024 23:37

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