How Large Is the Compensating Wage Differential for R&D Workers?

Arnaud Dupuy () and Wendy Smits ()

No 4194, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The aim of this paper is to measure the extent to which lower wages in R&D functions reflect a preference effect. In contrast to the bulk of the literature on compensating wage differentials that compares wage levels of jobs with different attributes, we constructed measures of willingness to accept (WTA) and pay (WTP) for an R&D jobs using contingent valuation technique. Earnings regressions using OLS show an R&D wage penalty of about 3.5%. However, hedonic OLS regressions of WTA and WTP give significant relative preference parameters for R&D jobs that range from 0.19 to 0.22.

Keywords: hedonic prices; compensating wage differentials; R&D workers (search for similar items in EconPapers)
JEL-codes: J3 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2009-05
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~ and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Economics of Innovation and New Technology, 2010, 19 (5), 423-436

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Journal Article: How large is the compensating wage differential for R&D workers? (2010)
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