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External pay gap of R&D personnel and total factor productivity of enterprises

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  • Chen, Lingling
  • Zhang, Chaolin

Abstract

This study examines the relationship between the external pay gap of research and development (R&D) personnel and the total factor productivity (TFP) of enterprises. The results show that the external pay gap of R&D personnel significantly improves the enterprises' TFP, while innovation output, innovation efficiency, and human capital quality play mediating roles in the effect. Furthermore, we find that the promotion effect of the external pay gap of R&D personnel is more significant in non-state-owned firms, firms in industries with high competition, and firms in regions with high economic development. In addition, the internal pay gap has a moderating effect on the effect.

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  • Chen, Lingling & Zhang, Chaolin, 2024. "External pay gap of R&D personnel and total factor productivity of enterprises," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324000898
    DOI: 10.1016/j.frl.2024.105059
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    1. Lu, Shan & Peng, Sihan & Shi, Jiaxin & Zhang, Ci & Feng, Yanchao, 2024. "How does digital transformation affect the total factor productivity of China's A-share listed enterprises in the mineral resource-based sector?," Resources Policy, Elsevier, vol. 94(C).

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    More about this item

    Keywords

    R&D personnel incentive; External pay gap; The total factor productivity of enterprises;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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