The Effects of Scientists and Engineers on Productivity and Earnings at the Establishment Where They Work

Erling Barth, James Davis, Richard Freeman and Andrew J. Wang

No 23484, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses linked establishment-firm-employee data to examine the relationship between the scientists and engineers proportion (SEP) of employment, and productivity and labor earnings. We show that: (1) most scientists and engineers in industry are employed in establishments producing goods or services, and do not perform research and development (R&D); (2) productivity is higher in manufacturing establishments with higher SEP, and increases with increases in SEP; (3) employee earnings are higher in manufacturing establishments with higher SEP, and increase substantially for employees who move to establishments with higher SEP, but only modestly for employees within an establishment when SEP increases in the establishment. The results suggest that the work of scientists and engineers in goods and services producing establishments is an important pathway for increasing productivity and earnings, separate and distinct from the work of scientists and engineers who perform R&D.

JEL-codes: D24 J21 J31 O3 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-eff, nep-hrm, nep-lma and nep-ltv
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Citations: View citations in EconPapers (13)

Published as The Effects of Scientists and Engineers on Productivity and Earnings at the Establishment Where They Work , Erling Barth, James C. Davis, Richard B. Freeman, Andrew J. Wang. in US Engineering in a Global Economy , Freeman and Salzman. 2018

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