Do R&D tax incentives lead to higher wages for R&D workers? Evidence from the Netherlands(Article)(Open Access)
- aUniversity of Maastricht, P.O. Box 616, 6200 MD, Maastricht, Netherlands
- bUniversity of Maastricht, UNU-MERIT and CIRANO, P.O. Box 616, 6200 MD, Maastricht, 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. © 2013 Elsevier B.V.
Indexed keywords
| Engineering controlled terms: | ElasticityIndustryTaxation |
|---|---|
| Engineering uncontrolled terms | Fiscal incentivesInstrumental variablesNetherlandsPanel dataTax creditsTax incentiveTax incentive programs |
| Engineering main heading: | Wages |
Funding details
| Funding sponsor | Funding number | Acronym |
|---|---|---|
| FP7 Socio-Economic Sciences and Humanities | SSH7-CT-2008-217436 | SSH |
| Ministerie van Economische Zaken | EZ |
-
1
The analysis for this paper was produced in part within the project “Evaluation of WBSO: Effects, coverage and execution”, commissioned by the Ministry of Economic Affairs of the Netherlands, and in part within the SCIFI-GLOW Collaborative Project supported by the European Commission's Seventh Framework Programme for Research and Technological Development, under the Socio-economic Sciences and Humanities theme (Contract no. SSH7-CT-2008-217436). This paper represents the personal views of the authors, and not necessarily those of the Dutch Ministry of Economic Affairs. The authors also wish to thank the members of the feedback group of the Ministry of Economic Affairs, two anonymous referees, Bronwyn Hall, Jacques Mairesse, Timothy Simcoe, discussants at IIOC 2009 conference, and participants at the EARIE conference in Ljubljana for their critical comments.
- ISSN: 00487333
- CODEN: REPYB
- Source Type: Journal
- Original language: English
- DOI: 10.1016/j.respol.2012.12.004
- Document Type: Article
- Publisher: Elsevier B.V.
Lokshin, B.; University of Maastricht, P.O. Box 616, Netherlands;
© Copyright 2017 Elsevier B.V., All rights reserved.
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