Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35675 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 4194
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
R&D workers
compensating wage differentials
hedonic prices
JEL: 
J3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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