R&D and Employment Relation: Differences in Low and High-Skilled Employment in Developing Economies

Authors

  • Hami SAKA PhD, Istanbul University, Department of Economics
  • Mehmet ORHAN PhD, Advanced Data Analytics Department, University of North Texas

DOI:

https://doi.org/10.17015/ejbe.2022.030.04

Keywords:

Technology, R&D, Unemployment, Skill, Pedroni Cointegration

Abstract

This paper attempts to investigate the effect of technology on employment based on skill groups in developing countries using data from 23 countries between 1990 and 2019. We use the macroeconomic framework to split employment in developing countries into high-skilled and low-skilled and examine how these two groups are affected by progress in technology. Pedroni’s (1999, 2004) and Kao’s (1999) cointegration methods reveal the statistically significant relationship among variables in the long run. Coefficients estimated in cointegration highlight that technology is among the factors that increase unemployment in developing countries. In addition, our baseline models document that inflation and real interest rates have a positive impact on unemployment. Finally, both high-skilled and low-skilled employment in developing countries are negatively affected by technology, and the negative impact is greater on low-skill employment.

Published

31-12-2022

How to Cite

SAKA, H. ., & ORHAN, M. . (2022). R&D and Employment Relation: Differences in Low and High-Skilled Employment in Developing Economies. Eurasian Journal of Business and Economics, 15(30), 63-86. https://doi.org/10.17015/ejbe.2022.030.04

Issue

Section

Articles