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Wage Fairness, Growth and the Utilization of R&D Workers

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  • Lundborg, Per

    (Trade Union Institute for Economic Research)

Abstract

In 1999, only one of three US scientists and engineers was employed to do R&D and, in several countries over the last forty to fifty years, employment of skilled workers for R&D purposes appears not to have kept pace with the overall increase in the supply of skilled workers. Low utilization of R&D personnel implies low growth per human capital endowments. To analyze the low R&D utilization/low growth equilibria, we set up an endogenous growth model in which firms set fair wages and which allows for an analysis of changes in the utilization rate of R&D workers. We find that the rise in under utilization and the fall in growth per human capital to be consistent with the increase in the demand for higher education. This could be interpreted as the “consumption” element in higher education has received an increased importance yielding a low growth effect of higher education. The results also point at problems of correctly measuring actual human capital inputs in firms.

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Bibliographic Info

Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 206.

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Length: 22 pages
Date of creation: 19 Sep 2005
Date of revision:
Handle: RePEc:hhs:fiefwp:0206

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Keywords: Efficiency wages; fairness; growth;

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References

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  1. Skogman Thoursie, Peter, 2005. "Happy Birthday! You are Insured - Differences in Work Ethics Between Female and Male Workers," Working Paper Series, Trade Union Institute for Economic Research 203, Trade Union Institute for Economic Research.
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  7. Fredrik Heyman, 2005. "Pay inequality and firm performance: evidence from matched employer-employee data," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(11), pages 1313-1327.
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  12. Arai, Mahmood & Vilhelmsson, Roger, 2001. "Immigrants' and Natives' Unemployment-risk: Productivity Differentials or Discrimination?," Working Paper Series, Trade Union Institute for Economic Research 169, Trade Union Institute for Economic Research.
  13. Heyman, Fredrik, 2002. "Wage Dispersion and Job Turnover: Evidence from Sweden," Working Paper Series, Trade Union Institute for Economic Research 181, Trade Union Institute for Economic Research.
  14. Clas Eriksson & Joakim Persson, 2003. "Economic Growth, Inequality, Democratization, and the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(1), pages 1-16, May.
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  16. Lundborg, Per, 2005. "Individual Wage Setting, Efficiency Wages and Productivity in Sweden," Working Paper Series, Trade Union Institute for Economic Research 205, Trade Union Institute for Economic Research.
  17. Lundborg, Per & Sacklén, Hans, 2003. "Low-Inflation Targeting and Unemployment Persistence," Working Paper Series, Trade Union Institute for Economic Research 188, Trade Union Institute for Economic Research.
  18. Nekby, Lena, 2002. "Gender Differences in Rent Sharing and its Implications for the Gender Wage Gap," Working Paper Series, Trade Union Institute for Economic Research 182, Trade Union Institute for Economic Research.
  19. Lundborg, Per & Sacklén, Hans, 2001. "Is There a Long Run Unemployment-Inflation Trade-off in Sweden?," Working Paper Series, Trade Union Institute for Economic Research 173, Trade Union Institute for Economic Research.
  20. Alexius, Annika, 2001. "How to Beat the Random Walk," Working Paper Series, Trade Union Institute for Economic Research 175, Trade Union Institute for Economic Research.
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  22. Lundborg, Per & Rechea, Calin, 2002. "Will Transition Countries Benefit or Lose from the Brain Drain?," Working Paper Series, Trade Union Institute for Economic Research 187, Trade Union Institute for Economic Research.
  23. Heyman, Fredrik, 2004. "The Employer Age-Wage Effect: Evidence from Matched Employer-Employee Data," Working Paper Series, Trade Union Institute for Economic Research 193, Trade Union Institute for Economic Research.
  24. Arai, Mahmood & Heyman, Fredrik, 2001. "Wages, Profits and Individual Unemployment Risk : Evidence from Matched Worker-Firm Data," Working Paper Series, Trade Union Institute for Economic Research 172, Trade Union Institute for Economic Research.
  25. Alexius, Annika & Carlsson, Mikael, 2001. "Measures of Technology and the Business Cycle: Evidence from Sweden and the U.S," Working Paper Series, Trade Union Institute for Economic Research 174, Trade Union Institute for Economic Research.
  26. Nekby, Lena, 2002. "Employment Convergence of Immigrants and Natives in Sweden," Research Papers in Economics, Stockholm University, Department of Economics 2002:9, Stockholm University, Department of Economics.
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