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How much does it cost to be a scientist?

Author

Listed:
  • Benjamin Balsmeier

    (KU Leuven
    University of Münster)

  • Maikel Pellens

    (KU Leuven
    Centre for European Economic Research (ZEW))

Abstract

We examine the academe–industry wage gap. Once self-selection and different personal characteristics of academic and industrial scientists have been taken into account the wage gap narrows from 28 to 13 %. The counterfactual wage faced by an academic scientist increases with time spent on development and decreases with time spent on research. This finding challenges the idea of a solely negative relationship between science and wages. We further find that preferences for science augment the relationship between research orientation and wages. Overall, the results have implications for policy makers that aim to increase development oriented research activities at universities, individual scientists thinking about whether to pursue a career in industry or academe, and managers trying to hire academic scientists.

Suggested Citation

  • Benjamin Balsmeier & Maikel Pellens, 2016. "How much does it cost to be a scientist?," The Journal of Technology Transfer, Springer, vol. 41(3), pages 469-505, June.
    • Handle: RePEc:kap:jtecht:v:41:y:2016:i:3:d:10.1007_s10961-014-9388-1
    DOI: 10.1007/s10961-014-9388-1
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    References listed on IDEAS

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    Cited by:

    1. Barge-Gil, Andres & D'Este, Pablo & Herrera, Liliana, 2018. "Corporate scientists as the triggers of transitions towards firms' exploration research strategies," MPRA Paper 85415, University Library of Munich, Germany.
    2. Paul Hünermund & Dirk Czarnitzki, 2016. "Estimating the local average treatment effect of R&D subsidies in a pan-European program," Working Papers of Department of Management, Strategy and Innovation, Leuven 541177, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.

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    More about this item

    Keywords

    Academe–industry wage gap; Economics of science; Matching;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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