The Relationship between Innovation and Employment in the Peruvian Manufacturing Industry, 2012-2014

Authors

  • José Luis Nolazco Cama University of Lima image/svg+xml
  • Nikita Céspedes Reynaga
  • Humberto Salas Fernandez

DOI:

https://doi.org/10.21678/apuntes.87.1053

Keywords:

process innovation; product innovation; employment; instrumental variables.

Abstract

This paper explores the relationship between innovation and employment in the Peruvian manufacturing industry based on the model developed by Jaumandreu (2003) and Harrison et al. (2008) and distinguishes between two types of innovation: product and process. The results show that process innovation reduces the level of employment by an average of 0.45% by replacing employment with more efficient physical capital. However, product innovation is found to increase the level of employment by an average of 0.67%, mainly because a new product is brought to market. The results obtained are robust according to size of firm, the quality structure of the workforce, and technological capacity.

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Published

2020-07-22

Issue

Vol. 47 No. 87 (2020)

Section

Articles

License

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How to Cite

Nolazco Cama, J. L., Céspedes Reynaga, N., & Salas Fernandez, H. (2020). The Relationship between Innovation and Employment in the Peruvian Manufacturing Industry, 2012-2014. Apuntes. Social Sciences Journal, 47(87). https://doi.org/10.21678/apuntes.87.1053