Do Innovative Firms Pay Higher Wages?: Micro-Level Evidence from Brazil

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Innovation as a Firm-Level Factor of the Gender Wage Gap

“…Figure 1 further confirms that the standard finding of a wage premium at innovative firms (e.g. Cirera andMartins-Neto 2020, Cirillo et al 2017) holds also in the case of various quantiles of the distribution of wages. It further confirms the standard result of the gender wage gap both at innovative and non-innovative firms.…”

“…The significant selection of high-wage employees in general to innovative firms already before innovation has been shown inCirera and Martins-Neto (2020).…”

Bridging the Technological Divide: Technology Adoption by Firms in Developing Countries

“…An extensive literature has examined how firms' characteristics affect wages. For instance, many findings have indicated the existence of a wage premium associated with firms that are large (Bloom et al 2018), are foreign-owned (Hijzen et al 2013), are exporters (Schank, Schnabel, and Wagner 2008), or are more innovative (Cirera and Martins-Neto 2020;Aghion et al 2018). However, although technology adoption relates to some of these characteristics, the literature has not explicitly examined the existence of a technology wage premium.…”