Investments and labour demand: Empirical evidence from Italian firms

Abstract

In this paper we investigate the association between investments in physical and human capital and vacancies that firms are willing to open up. In particular this study aims to deepen the relationship with the vacancies of these occupational profiles: managers and professionals (ISCO group 1-2), technicians and executive professionals (ISCO group 3-5 6) operators and elementary occupations (ISCO group 7-8). The results reveal that the investment in physical capital and the investment in human capital are related to the probability that firms open vacancies. In addition, we observe that the investment in human capital increase more significantly and intensely the probability that firms open vacancies compared to the investment in physical capital.