Employment stability and corporate innovation

Syungjin Han (First Author), Chang Hyun Kim (Participant Author)

Research output: Contribution to journalJournal

3 Citations (Web of Science)


We present a novel measure of firm-level employment stability, defined as one minus a firm's employment elasticity with respect to its sales. We find that employment stability is positively associated with innovation output, measured by the number of patents and subsequent citations, and the originality and generality of the patents. Our findings suggest that employment stability enhances employees' incentives for innovation by providing tolerance for failure.
Original languageEnglish
JournalApplied Economics Letters
Issue numberEarly Access
Publication statusPublished - 2020

Corresponding author email


Project name

new faculty research support fund of the College of Business School at Hongik University

Project sponsor


Project No.



  • Employment stability
  • innovation
  • patenting
  • tolerance for failure

Indexed by

  • ABDC-B
  • SSCI


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