This paper uses linked establishment-firm-employee data to examine the relationship between the scientists and engineers proportion (SEP) of employment, and productivity and labor earnings. We show that: (1) most scientists and engineers in industry are employed in establishments producing goods or services, and do not perform research and development (R&D); (2) productivity is higher in manufacturing establishments with higher SEP, and increases with increases in SEP; (3) employee earnings are higher in manufacturing establishments with higher SEP, and increase substantially for employees who move to establishments with higher SEP, but only modestly for employees within an establishment when SEP increases in the establishment. The results suggest that the work of scientists and engineers in goods and services producing establishments is an important pathway for increasing productivity and earnings, separate and distinct from the work of scientists and engineers who perform R&D.
Is compliance with international labour standards good for economic development, or does non-compliance give countries a competitive advantage? Are we faced with a ‘race to the bottom’ with respect to labour standards?...As old as these questions are, we still lack anything like definitive answers to them. Knowing the answers should not call into question the objective of improving compliance with international labour standards, but rather inform the strategy by which this is pursued. In spite of there being a fair amount of research, a key bottleneck in moving forward is adequate measures for many international labour standards, particularly for freedom of association and collective bargaining (FACB) rights which are intrinsically difficult to measure. To address this gap, new labour rights indicators and an accompanying dataset, both focusing on FACB rights, have been launched by the Center for Global Workers’ Rights at Penn State University together with the Global Labour University.