Innovation andthe LaborMarketDr.MScBertSadowskiTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
Innovation and the Labor Market Dr. MSc Bert Sadowski
StructureCurrentSituationinLaborMarketsin EuropeHistoryof laborsubstitutionandtechnologicalchange("Ludditemovement")·Factor-biasedtechnologicalchange·Impact of technological change on wages andeducationTrendsof relativewagesintheNetherlands.Forces affecting wages in developed and developingcountriesTechnischeUniversiteitTUEindhoven-University ofTechnologyPAGE110/21/2013EcononomicsofInnovation2013
Structure • Current Situation in Labor Markets in Europe • History of labor substitution and technological change (“Luddite movement”) • Factor-biased technological change • Impact of technological change on wages and education • Trends of relative wages in the Netherlands • Forces affecting wages in developed and developing countries Econonomics of Innovation 2013 10/21/2013 PAGE 1
Youthunemploymentin EuropeYouth unemploymentrateYouthunemploymentratio20102012201020112012Q4*20112012EU-2721.121.422.823.29.09.19.720.920.823.023.78.78.79.6Euro area22.418.719.822.07.36.06.2Belgium6.78.521.825.028.128.47.4Bulgaria18.318.119.519.35.75.46.1CzechRepublic9.1Denmark14.014.214.114.29.49.69.98.17.94.18.65.14.5Germany32.922.320.919.312.69.18.7Estonia27.629.412.012.112.3Treland29.130.432.944.455.357.910.013.016.1Greece41.646.453.255.217.819.020.6Spain25.423.622.824.38.98.49.0France27.829.135.336.97.98.010.1Italy31.810.816.622.427.86.78.7Cyprus37.231.028.424.713.911.611.4Latvia35.332.226.424.27.710.49.0Lithuania15.816.418.718.53.54.25.0Luxembourg7.326.16.66.4Hungary26.628.128.813.413.014.214.56.7-72lfalea-7.477.68.79.59.86.05.36.6Netherlands38.38.78.88.7525.05.2Austria25.88.28.9Poland23.726.527.58.78.211.714.3Portugal27.7e30.137.738.422.123.722.722.26.97.47.0Romania15.720.623.25.95.97.1Slovenla14.7Slovakia33.933.534.035.110.410.010.421.420.119.310.610.19.8Finland19.012.824.822.823.724.112.112.4Sweden21.120.711.612.4United Kingdom19.621.012.4*Thequarterlyyouthunemploymentrateisseasonallyadjusted.e:estimateLUEindhoven-UniversityofTechnology10/21/2013PAGE2EcononomicsofInnovation2013
Youth unemployment in Europe Econonomics of Innovation 2013 10/21/2013 PAGE 2
Unemployment in Europe3027.926.2252016.516.916.9%1510.210.310.40.91101112.012212313013614.108.77.98.08.07.71.57.06.46.66.94.95.25.8R2EHA上8吉&335T3之38AV0*7E51-June2013$*Juv2013$**022015Technische UniversiteitTUEindhoven-UniversityofTechnology10/21/2013PAGE3EcononomicsofInnovation2013
Unemployment in Europe Econonomics of Innovation 2013 10/21/2013 PAGE 3
Labor market dynamics and technologyUnemployment ratesfortheyouthare mostlyhigherthanaveragerateof unemployment(2oo8:twiceashigh)>>solution:rebalancinglabormarket?JanvanOurs(TilburgUniversity)http:l/www.mejudice.nl/video/detail/jan-van-ours-over-de-arbeidsmarkt>>what is the function of technological change andinnovationinsolvingproblemsonthelabormarket?TechnischeUniversiteitTUEindhovenUniversityofTechnologyPAGE410/21/2013EcononomicsofInnovation2013
Labor market dynamics and technology • Unemployment rates for the youth are mostly higher than average rate of unemployment (2008: twice as high) >> solution: rebalancing labor market? • Jan van Ours (Tilburg University) • http://www.mejudice.nl/video/detail/jan-van-oursover-de-arbeidsmarkt >> what is the function of technological change and innovation in solving problems on the labor market? Econonomics of Innovation 2013 10/21/2013 PAGE 4