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Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland


Lehnert, Patrick; Pfister, Curdin; Backes-Gellner, Uschi (2020). Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland. Swiss Leading House "Economics of Education" Working Paper 141, University of Zurich.

Abstract

We examine whether firms increase their employment of R&D personnel in response to an expansion of tertiary education institutions, i.e., a supply shock of skilled labor. We use the staggered introduction of Universities of Applied Sciences (UASs) in Switzerland as a quasi-natural experiment to identify causal effects. Firms located near a new UAS campus experience an education-driven labor supply shock in the form of UAS graduates newly entering the local labor market. Using a large representative firm survey and applying a difference-in-differences model, we find that this labor supply shock has positive effects: first, on the percentage of R&D personnel relative to total employment and, second, on the percentage of total wages paid to them. These effects are driven by both very small firms (five to nine employees) and very large ones (5,000 or more). Our findings suggest that a tertiary education expansion can stimulate innovation activities by increasing the personnel resources devoted to R&D.

Abstract

We examine whether firms increase their employment of R&D personnel in response to an expansion of tertiary education institutions, i.e., a supply shock of skilled labor. We use the staggered introduction of Universities of Applied Sciences (UASs) in Switzerland as a quasi-natural experiment to identify causal effects. Firms located near a new UAS campus experience an education-driven labor supply shock in the form of UAS graduates newly entering the local labor market. Using a large representative firm survey and applying a difference-in-differences model, we find that this labor supply shock has positive effects: first, on the percentage of R&D personnel relative to total employment and, second, on the percentage of total wages paid to them. These effects are driven by both very small firms (five to nine employees) and very large ones (5,000 or more). Our findings suggest that a tertiary education expansion can stimulate innovation activities by increasing the personnel resources devoted to R&D.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:1 June 2020
Deposited On:08 Aug 2019 09:44
Last Modified:18 Mar 2022 09:49
Series Name:Swiss Leading House "Economics of Education" Working Paper
OA Status:Green
Official URL:https://ideas.repec.org/p/iso/educat/0141.html
Related URLs:https://www.zora.uzh.ch/id/eprint/190864/
Other Identification Number:merlin-id:17935

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