Laura Baensch, María Laura Lanzalot, G. Lotti, Rodolfo Stucchi
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Do Labor Market Regulations Affect the Link between Innovation and Employment?: Evidence from Latin America
The link between innovation and employment is at the center of the policy debate. This paper sheds light on how labor market regulations affect the relationship between different types of innovation and employment in Latin America. We estimate the model developed by Harrison et al. (2014) using Enterprise Surveys for 14 Latin American countries. We find that: (i) product innovations have a positive impact on employment growth; (ii) process innovations do not affect employment growth; (iii) more rigid labor market regulations (minimum wages and severance payments) reduce the effects of innovation.
期刊介绍:
The B.E. Journal of Economic Analysis & Policy welcomes submissions that employ microeconomics to analyze issues in business, consumer behavior, and public policy. We aim to be an international forum for scholarship, whether the scholarship considers an issue that is general or that pertains to a particular country or region, but authors should bear in mind that our readers come from around the world. Potential issues of interest include: the interaction of firms, the functioning of markets, the effects of domestic and international policy, and the design of organizations and institutions.