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

Research output: Contribution to journalArticleAcademicpeer-review

8 Citations (Scopus)

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. (C) 2013 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)823-830
JournalResearch Policy
Volume42
Issue number3
DOIs
Publication statusPublished - 1 Jan 2013

Cite this

@article{800acd91ae404a2090999872c5247d04,
title = "Do R&D tax incentives lead to higher wages for R&D workers? Evidence from The Netherlands",
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. (C) 2013 Elsevier B.V. All rights reserved.",
author = "B. Lokshin and P. Mohnen",
year = "2013",
month = "1",
day = "1",
doi = "10.1016/j.respol.2012.12.004",
language = "English",
volume = "42",
pages = "823--830",
journal = "Research Policy",
issn = "0048-7333",
publisher = "Elsevier",
number = "3",

}

Do R&D tax incentives lead to higher wages for R&D workers? Evidence from The Netherlands. / Lokshin, B.; Mohnen, P.

In: Research Policy, Vol. 42, No. 3, 01.01.2013, p. 823-830.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Do R&D tax incentives lead to higher wages for R&D workers? Evidence from The Netherlands

AU - Lokshin, B.

AU - Mohnen, P.

PY - 2013/1/1

Y1 - 2013/1/1

N2 - 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. (C) 2013 Elsevier B.V. All rights reserved.

AB - 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. (C) 2013 Elsevier B.V. All rights reserved.

U2 - 10.1016/j.respol.2012.12.004

DO - 10.1016/j.respol.2012.12.004

M3 - Article

VL - 42

SP - 823

EP - 830

JO - Research Policy

JF - Research Policy

SN - 0048-7333

IS - 3

ER -