Labor shortage and innovation

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Author: Horbach, Jens; Rammer, Christian


Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper addresses this question using panel data from three waves (2017 to 2019) of the German innovation survey. We measure labor shortage by job openings that could not be filled at all, not with the required skills or only with...  [+] Show more

Subjects: Skills and knowledge; Performance; Labour market; Employment; Innovation

Keywords: Employment pattern; Labour shortage; Skill needs; Skill shortage; Productivity; Labour demand

Geographic subjects: Germany; Europe

Published: Mannheim, Germany: Centre for European Economic Research, University of Mannheim, 2020

Physical description: 21 p.

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Series: ZEW discussion paper; no. 20-009

Resource type: Discussion paper

Call number: TD/TNC 140.578

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