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Dupuy, Arnaud
Smits, Wendy
Year of Publication: 
Series/Report no.: 
IZA discussion papers 4194
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.
R&D workers
compensating wage differentials
hedonic prices
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Document Type: 
Working Paper

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