Do R&D tax incentives lead to higher wages for R&D workers? Evidence from The Netherlands

Boris Lokshin and Pierre Mohnen

Research Policy, 2013, vol. 42, issue 3, 823-830

Abstract: This paper examines the impact of the Dutch R&D tax incentive scheme on the wages of R&D workers. We construct firm specific R&D tax credit rates that vary over time following variations in the Dutch R&D tax incentive program. Using instrumental variables we estimate a wage-sharing model with an unbalanced firm-level panel data covering the period 1997–2004. The elasticity of the R&D wage with respect to the fraction of the wage supported by the fiscal incentives scheme is estimated at 0.2 in the short run and 0.24 in the long run.

Keywords: R&D wages; Tax incentives (search for similar items in EconPapers)
JEL-codes: C23 H25 J30 O32 O38 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:42:y:2013:i:3:p:823-830

DOI: 10.1016/j.respol.2012.12.004

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