Labor market regulation, the diversity of knowledge and skill, and national innovation performance
The diversity of knowledge and skill is an important element of a national system of innovation. We propose a theory of how certain labor market institutions affect diversity, and through that route affect levels of innovation. Specifically, unemployment protection (UP) encourages diversity by reducing the risk burden of a broad range of learning, or human capital investment; for that reason, UP fosters innovation. Employment protection (EP) reduces the risk burden of a much narrower range of learning; for this reason, it will not enhance diversity to the extent UP does, and it may actually depress overall diversity and innovation. Our approach differs from previous research on labor market insurance and skill formation, much of which has dealt with a distinction between general and specific skills, and which has treated the effects of UP and EP as similar. Estimating the effects of UP and EP on patenting for 25 OECD countries over 24 years, we find a positive effect from UP, a negative effect from EP, and evidence that the UP effect is mediated by diversity of skill.
|Author(s)||A. Filippetti, F. Guy|
|Year of publication||Oct, 2019|
|Volume, Number||49, 1|
|Website / Document||Visit|
Nieuwsbrief week 44 - 2019
- Platform work: Maximising the potential while safeguarding standards? 2019. I. Mandl.
- The European Employment Strategy, the European Social Pillar and their Impact on Labour Law Reform in the European Union, 2019. R. Rogowski.
- Labor market regulation, the diversity of knowledge and skill, and national innovation performance, 2019. A. Filippetti, F. Guy.
- The Wrong Kind of AI? Artificial Intelligence and the Future of Labor Demand, 2019. D. Acemoglu, P. Restrepo.
- Handbook of the Politics of Labour, Work and Employment, 2019. G. Gall (Ed.).
- Ontslagbescherming in Nederland: in dienst van baanzekerheid of werkzekerheid? 2019. N. Zekić.
- Herhaling virtuele praktijktests arbeidsmarktdiscriminatie, 2019. Panteia.
- Arbeidsmarkt in kaart: werkgevers editie 2, 2019. SCP.
- Vakbondslidmaatschap onder druk in Nederland, maar niet in België, 2019. P.T. de Beer, L.E. Berntsen.
- (A)symmetrieën in – en op – het werk, 2019. S.B. de Jong.