Wages and innovations in Spanish manufacturing firms

Author: Martínez-Ros, Ester

Source: Applied Economics, Volume 33, Number 1, 15 January 2001 , pp. 81-89(9)

Publisher: Routledge, part of the Taylor & Francis Group

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The question of whether workers take part of the rents when a firm introduces technological changes is studied. Information from a Spanish survey, the Encuesta sobre Estrategias Empresariales covering a period of five years, 1990-1994 is used. Given the data available, panel data techniques are used to control unobserved heterogeneity. A new estimation method proposed by Arellano and Bover (1995) has also been used to improve efficiency results. The results provide confirmation that innovations may be a good approximation to economic rents. In fact, firms which carry out process and product innovations jointly pay larger wages. Moreover, there exists evidence that process innovations and process and product innovations jointly are determined with wages.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840150203251

Publication date: January 15, 2001

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