Working Paper No. 293: Employment Impacts of Market Novelty Sales

PublikationWorking paper
Arbetsmarknad, Martin Falk
Employment mf_eh_Impacts_of_Market_Novelty_Sales_293
Ladda ner


This study investigates the impact of new market product (market novelty) sales on labour demand (employment). Based on a two-output cost function (market novelties and existing products) a relative employment equation is derived with the ratio of labour to material inputs as dependent variables. The relative labour demand model is estimated using biennial data for 25 industries, nine European countries and five time periods (2002-2010) or by use of a sizeclass dataset with broad industry groups. System GMM estimations accounting for endogeneity show that the turnover (sales) of market novelties (in relation to existing products) has a significant impact on relative employment in manufacturing industries. On average, an increase in the relative turnover of new market products by one percentage point is associated with a 1.6 per cent increase in the employment ratio. In contrast, employment in service industries does not benefit from new market products but instead from the intensity with which information and communication technology innovations are used, approximated by the proportion of broadband internet connected employees. When instead the size-class dataset is employed, it becomes clear that market novelties primarily drive employment in small firms.

Falk, M. & Hagsten, E. (2017). Employment Impacts of Market Novelty Sales. Ratio Working Paper No. 293. Stockholm: Ratio.

Liknande innehåll

Working Paper No. 333: Balancing employment protection and what’s good for the company
Working paperPublikation
Stern, C. & Weidenstedt, L.


Publicerat i

Ratio Working Paper


Like most developed countries, Sweden has institutionalized employment protection legislation, called LAS. LAS is interesting theoretically because parts of it are semi-coercive. The semi-coerciveness makes it possible for firms and unions under collective agreements to negotiate departures from the law, for instance regarding seniority rules and terminations due to employees’ fit and/or misconduct. In this sense, the law is more flexible than the legal text suggests. The present study explores how the semi-coercive institution of employment protection is perceived and implemented by managers of smaller manufacturing companies. The results suggest that managers support the idea of employment protection rules in principle but face a difficult balancing act in dealing with LAS. Thus, the institutional legitimacy of the law is low. LAS ends up producing local cultures of hypocrisy and pretense. The paper gives insights into how institutions aimed at producing good moral behavior sometimes end up producing the opposite.

Moderna tider 4.0
Grafström, J.



Vi är många som närmar oss ett vägval: antingen kan vi börja på en yrkesväg som leder till guld och gröna skogar, eller fortsätta trampa en allt smalare och allt mer eftersatt stig. Den här boken vänder sig till dig som är nyfiken på vad det är som förändras i Sverige och världen idag, vad vi kan lära oss av historiska omställningar och vilka branscher som kan påverkas, blomstra – eller dö.

Oavsett om det är teknologisk utveckling eller oförutsedda globala händelser som orsakar branschförändringar är en sak klar: förändringarna sker snabbt. Många kommer inte hinna med tåget. Det här är guiden till framtidens yrken för dig som inte vill bli kvar på perrongen.

The Proportionality Principle in German and European Rules of Industrial Conflict
Waas, B.


Publicerat i



This report deals with the significance of the principle of proportionality in the strike law of Germany and the EU. As far as German law is concerned, the legal basis and content of the principle of proportionality will first be outlined, and then the importance of the principle for labour law in general. The main issue, however, is the role played by the principle of proportionality in industrial action law. There the Federal Labour Court has meanwhile raised the principle to the central yardstick for the assessment of industrial action measures. The relevant decisions will be presented, but also the considerable criticism of these will not be concealed. Subsequently, EU law will come to the fore, whereby the legal basis, the content and the scope of application of the principle of proportionality will be dealt first. On that basis, the application of the principle in industrial action law will be examined. In that context, the focus will be in the decisions of the European Court of Justice in the cases Laval and Viking. The following section is then devoted to the comparison of German and European law. The author here demonstrates that there are considerable differences in the application of the principle of proportionality.

Visa fler

Ratio är ett fristående forskningsinstitut som forskar om hur företagandets villkor kan utvecklas och förbättras.

Sveavägen 59 4trp

Box 3203

103 64 Stockholm

Postgiro: 382621-1


Bankgiro: 512-6578