ISIGrowth results presented at a major workshop in Rome

Two ISIGrowth studies have been presented on June 21 during an International Workshop held in Rome at National Research Council of Italy

The two studies “Innovation and Temporary Employment: a Test on European Industries” written by Armanda Cetrulo, Valeria Cirillo and Dario Guarascio and “Do firm-level pay agreements affect within-firm wage inequalities? Evidence across Europe” by Valeria Cirillo, Matteo Sostero and Federico Tamagni from Sant’Anna School of Advanced Studies – Institute of Economics – have been presented on June 21 at the V International Workshop on Computational Economics and Econometrics, taking place in Rome at National Research Council of Italy from June 21 to June 23, 2017. Both papers have been developed under the EU funded ISIGrowth project.

The International Workshop, as reported here, “aims to provide a rigorous scientific discussion about the evolution and performance of socio-economic systems in the light of the tools offered by modern quantitative socio-economic science”.

The first study on “Innovation and Temporary Employment: a Test on European Industries” investigates the relationship between innovation and temporary employment within industries of five European countries (Italy, Spain, France, Germany and Netherlands) over the period 1998-2012.

The Sectoral Innovation Database (SID) – which combines information on innovation, economic outlook and employment for the five economies – is used to perform the empirical analysis. Taking into account the variety of sectoral technological patterns, a negative relationship between temporary employment and the introduction of new products is identified. More precisely, the detrimental effect of temporary jobs on innovation appears to be stronger in medium and high-tech sectors, both proxied by Peneder classification and Schumpeter mark I-II regimes defined by the concentration of firms’ intangible assets.

The second study investigates the relation linking firm-level bargaining and within-firm wage inequalities in six European economies (Belgium, Spain, Germany, France, the Czech Republic and the UK) between 2006 and 2010. We measure within-firm inequalities both as the ratio between the 90th and the 10th percentile wage, and that between the upper and lower echelon of the corporate ladder. The estimated effects of decentralized wage setting are widely heterogeneous both across countries and over time. At least in some countries, however, firm-level agreements evolved over time enlarging inequalities in favor of top-paid workers, albeit not favoring managerial positions.