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Research on wage distortion in R&D and innovation activities —— Evidence from China's listed manufacturing enterprises

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  • Ding, Yijiu
  • Li, Bo
  • Lan, Dahai
  • Yu, Chunrong
  • Zhang, Xueqing

Abstract

Under the dual emphasis on the innovation-driven development strategy and the goal of common prosperity, scientifically evaluating wage distortion in R&D and innovation activities (WD-RDIA) is of critical importance for improving income distribution mechanisms, enhancing innovation efficiency, and strengthening national core competitiveness. This study utilizes data from China's listed manufacturing enterprises from 2018 to 2023, and applies a measurement method under conditions of imperfect competition to investigate WD-RDIA. The findings are as follows: First, WD-RDIA is widespread among China's manufacturing enterprises, and exceeding the average wage distortion across the entire production and operation process. Second, WD-RDIA exhibits notable heterogeneity. Regarding ownership structure, WD-RDIA is most pronounced in privately-owned enterprises, followed by foreign-funded enterprises, with state-owned enterprises experiencing relatively lower levels. From industry characters perspective, WD-RDIA is most severe in capital-intensive enterprises, while it is relatively weaker in labor-intensive and technology-intensive enterprises, both of which are less affected than capital-intensive industries. Third, employment pressure has amplified enterprises' bargaining power in wage decision-making processes, serving as an important driver of WD-RDIA.

Suggested Citation

  • Ding, Yijiu & Li, Bo & Lan, Dahai & Yu, Chunrong & Zhang, Xueqing, 2025. "Research on wage distortion in R&D and innovation activities —— Evidence from China's listed manufacturing enterprises," International Review of Economics & Finance, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025005052
    DOI: 10.1016/j.iref.2025.104342
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