ESSAYS ON THE EMPLOYMENT IMPACT OF TECHNOLOGICAL INNOVATION

2025-3-6
CEBİR BENLİ, BİLGEN
The employment impact of technological innovation has long been debated in economic literature. This Thesis explores this issue in developing countries in two different contexts. Using firm level survey data collected by World Bank, the first essay examines the employment impact of technological innovation by applying the methodology of Harrison et al. (2014) and extended by Cirera and Sabetti (2019) with the same data set we use. We extend the model in a different way by controlling the potential employment impact of business obstacles perceived by the firms. Our findings align with most of the literature in the sense that product innovation enhances labor and this result is robust under various specifications or in different regions whereas the impact of process innovation is not so visible. For the pooled sample, the process innovation is labor-saving. On regional base, we obtain a robust result for labor-saving effect of process innovation only for Africa. On the other hand, controlling the perceived business obstacles improves the statistical significance of labor-saving impact of process innovation for South Asia, ECA and MENA in some cases. The second essay examines how pre-shock technological innovation affects firm-level employment during that shock, with a reference to COVID-19 Pandemic. By using WBES and its COVID-19 Follow-Up surveys, we estimate the employment impact of pre-COVID technological innovation during the Pandemic. The results indicate that firms engaging in product innovation in pre-Pandemic period have been more resilient in maintaining employment levels during the Pandemic while process innovation reveals no significant impact.
Citation Formats
B. CEBİR BENLİ, “ESSAYS ON THE EMPLOYMENT IMPACT OF TECHNOLOGICAL INNOVATION,” Ph.D. - Doctoral Program, Middle East Technical University, 2025.