Employment growth is one of the most crucial indicators for economic policy. Using firm data from Eastern European countries, Dr Stefan Schneck, Dr Sebastian Nielen and Dr Christian Dienes show in their article "Does Innovation Shape the Employment Growth Distribution? Evidence from East European Firms" that the effects of process innovation on job creation are ambiguous.
An increase in firms with new products and services to the market shapes the upper tail of the employment growth distribution. Product and service innovations thus cause skewness of the employment growth distribution and are a major determinant of job creation. Their article appeared in volume 74, issue 2 of the “Review of Economics”.