Industrial and employment dynamics


Type Research Project

Funding Bodies

Duration Oct. 1, 2002 - May 1, 2005

  • Political Economy, International Economics and Development AE (Former organization)

Tags

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  • Hölzl, Werner (Former researcher)
  • Pichler, J. Hanns (Details) Project Head
  • Ragacs, Christian (Former researcher)
 

Abstract (German)

Das Forschungsprojekt untersucht die Industrie- und Beschäftigungsdynamik im österreichischen sachgütererzeugenden Sektor aus industrieökonomischer Warte, mit dem Ziel festzustellen, inwieweit industriespeziefische Faktoren (z.B. versunkene Kosten, Unsicherheit) Industrie- und Beschäftigungsdynamiken sowie Lohnveränderungen bestimmen. <P>
Dieses Forschungsziel wird mittels detaillierter Datengrundlagen auf Fachverbandsebene und disaggregiert (auf 3-Stellerebene) untermauert. Teilziele sind dabei die Konstruktion struktureller Indikatoren für in der Regel nicht efassbare industriespezifische Faktoren, sowie Berechnung eines Indikators für technischen Wandel mit Hilfe ökonometrischer Methoden.<P>
Die Forschungsergebnisse sollen Aufschluss geben über die Natur mittel- bis langfristiger Industrie- und Beschäftigungsdynamiken, die in einer Reihe von Politikfeldern auch von direkter wirtschaftspolitischer Relevanz sind, wie etwa Investitions-, Beschäftigungs- und Unternehmensgründungspolitik.


Abstract (English)

Technical change and the increasing mechanisation of production activities are at the root of the declining share of industry, and particularly of manufacturing in terms of employment and production observed in most industrialised counties in the postwar period. This is often referred to as process of deindustrialisation associated with a higher level of economic development. The literature on industrial dynamics asserts that technical change is one of the primary determinants of industrial dynamics, shaping processes of entry and exit and thereby influencing the size distribution of establishments. On the other hand, the contraction of manufacturing brings along a displacement of workers from factory jobs to services or unemployment, representing the cost side of deindustrialisation.<P>
This research proposal focuses on an empirical analysis of industry and employment
dynamics at an intermediate level of disaggregation of Austrian manufacturing. The research question of this proposal is: Do different industries react differently to technology (supply) and demand shocks? And if they do, does it matter and how can this be understood? We evaluate this question by investigating the impact of
technical change and changes in demand on structural industry characteristics, and on employment and wage dynamics in Austrian industry. The study of industrial dynamics is fundamental to many research avenues in economics.<P>
While it is true that this research aims primarily to test underlying theories, our findings will have implications for a variety of policy questions related to competition policy, determinants of firm size distribution, employment and investment policy.

Publications

Chapter in edited volume

2007 Reinstaller, Andreas, Hölzl, Werner. 2007. Structural dynamics in Austrian manufacturing sectors: identification and estimation in a SVAR framework. In Productivity. Issues in Economic Development, Hrsg. Venkata Seshaiah Sakalya, 38-62. Hyderabad: ICFAI University Press. (Details)

Unpublished lecture

2003 Hölzl, Werner. 2003. Sunk costs, entry and exit in Austrian manufacturing. Vortrag im Rahmen des AssistentInnenseminars des Instituts für Volkswirtschaftslehre (Details)

Classification

  • 5331 Structural policy (Details)
  • 5334 Political economic policy (Details)

Expertise

  • industrial structure
  • sunk costs
  • size distribution
  • emplosment dynamics
  • technical change