Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 494: Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey
Mezid N. Keraga () and Andreas Stephan ()
Additional contact information
Mezid N. Keraga: Addis Ababa University
Andreas Stephan: Linnaeus University
Abstract: This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies.
Keywords: Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach
Language: English
26 pages, November 30, 2023
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