Working Paper #2012-058
Do R&D tax incentives lead to higher wages for R&D workers? Evidence from the Netherlands
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
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- R&D wages
- tax incentives
- JEL codes
-
- O32
- O38
- H25
- J30
- C23
Cite this as
APA 7th ed.Lokshin, B., & Mohnen, P. (2012). Do R&D tax incentives lead to higher wages for R&D workers? Evidence from the Netherlands (UNU-MERIT Working Paper No. 2012-058). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=4782