Employment and innovation: Firm level evidence from Argentina

This article provides evidence about the effect of innovation on employment in Argentina in the period 1998–2001. In particular, we quantify the effect of process and product innovations on employment growth and the skill composition. Our results show that: (1) Product innovations have a positive effect on employment growth biased toward skill labor; (2) Process innovations do not affect employment growth or composition; (3) There are no heterogeneous effects in technology intensity and size; (4) Most of the contraction in employment in this period was explained by noninnovators.