The Future of Work Innovation and Employment Preeya Mohan and Eric Strobl Sir Arthur Lewis Institute of Social and Economic Studies, UWI, St. Augustine Research consultation: The future of work in the Caribbean What do we need to know? What do we know? UWI, St Augustine Monday 4 th December 2017 1
Motivation • Why is innovation important for the future of work? – Employment reduction effect of technological change versus employment expansion effect of market compensation. – Qualitative effect of increasing workers skills versus quantitative effect of worker lay-offs. – Different types of innovation can have different employment impacts. • The path to job creation in the Caribbean is innovation (Ruprah 2016). 2
Data • Paucity of empirical evidence on how employment (quantity and quality) and innovation interact- even more acute for the Caribbean. • Lack of employment data in the Caribbean, in particular micro level data. • Caribbean firm level data: – World Bank Enterprise Survey- WBES (2010) – Productivity Technology Innovation Survey-PROTEqIN (2014) 3
Innovation Caribbean 21% 16% 14% 13% 11% 9% Product Process Organizational Marketing Energy Environmental % of Total Firms 4
Innovation Product Process Organizational Marketing Energy Environmental TTO 24 13 11 11 14 8 SUR 46 33 24 48 21 26 VCT 26 16 12 9 16 11 KNA 18 7 5 7 13 14 LCA 19 13 8 6 11 13 JAM 12 8 4 12 14 0 GUY 40 23 17 43 43 44 GRD 17 10 9 9 18 16 DMA 14 10 6 4 13 13 BLZ 7 2 4 11 7 0 BRB 22 15 11 13 10 0 BHS 22 13 9 13 13 12 ATG 17 7 5 4 18 11 % of Total Firms 5
Workforce Composition Caribbean 31% 29% 20% 20% Management Skilled Production Unskilled Production Non production % of Total Workforce 6
Workforce Composition Management Skilled Production Unskilled Production Non production TTO 31 34 26 9 SUR 9 38 13 40 VCT 29 34 24 13 KNA 28 34 24 14 LCA 28 34 24 14 JAM 8 19 10 63 GUY 8 24 37 31 GRD 29 34 24 13 DMA 30 33 24 13 BLZ 10 22 8 60 BRB 8 12 5 75 BHS 27 34 25 14 ATG 30 33 24 13 7
Innovation & Workforce Development Caribbean 6% 6% 4% 3% Modifications New Skills Train Recruit 8 % of Total Firms
Innovation & Workforce Development Modifications New Skills Train Recruit TTO 4 2 2 6 SUR 23 18 11 22 VCT 6 4 3 8 KNA 3 2 0 4 LCA 2 2 1 5 JAM 3 3 2 2 GUY 15 14 12 13 GRD 5 2 3 5 DMA 4 2 2 5 BLZ 2 2 2 2 BRB 7 7 3 0 BHS 4 2 2 5 ATG 3 1 2 3 % of Total Firms 9
Innovation & Employment • Firm performance measured by technical efficiency using stochastic frontier analysis: – Cobb-Douglas production function. – Hypothesised explanatory variables. • Skilled workers • Training • R&D 10
Thank you Preeya.Mohan@sta.uwi.edu 11
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