How large is the compensating wage differential for R&D workers?
AbstractThe aim of this paper is to measure the extent to which lower wages in R&D functions reflect a preference effect. In contrast to the bulk of the literature on compensating wage differentials that compares wage levels of jobs with different attributes, we constructed measures of willingness to accept (WTA) and pay (WTP) for R&D jobs using the Contingent Valuation technique. Earnings regressions using OLS show an R&D wage penalty of about 3.5%. However, hedonic OLS regressions of WTA and WTP give significant relative preference parameters for R&D jobs that range from 0.19 to 0.22.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 19 (2010)
Issue (Month): 5 ()
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Other versions of this item:
- Dupuy, Arnaud & Smits, Wendy, 2009. "How Large Is the Compensating Wage Differential for R&D Workers?," IZA Discussion Papers 4194, Institute for the Study of Labor (IZA).
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
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