The Impact of Intangible Capital on Productivity and Wages: Firm level evidence from Peru
Rafael Castillo & Gustavo Crespi
What the paper says
In the past decades, intangibles assets have become an important source of productivity and economic growth in developed countries.Despite the transforming properties of intangibles across economies and the large and dynamic literature on the impact of intangible investments on productivity growth in frontier countries, there is not much evidence for the Latin America context.This paper contributes to the empirical literature on intangible investments along various dimensions.First, we make use of a large firm-level longitudinal data set from Peru, a Latin America middle income country, which contains separated information on intangible assets, which allow us to measure the impact of them on both wages and productivity at the firm level.Second, the analysis at the firm level and the panel structure of the data allows us to control for the endogeneity of variable inputs applying different control function approaches.In addition, the production function estimates provide us with a measure of unobservables, which we include in the wage equation to retrieve consistent estimates for the impact of intangible assets on wages.Third, our data allow us to explore how the impact of intangibles on wages and productivity is affected by the differences in the composition of the bundle of intangibles, changes in the product mix at the firm level and for the presence of imperfect competition in the labor market.We find that an increase in the share of intan-*
1 citation
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.19 × 0.4 = 0.07 |
| M · momentum | 0.53 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.