TY  - RPRT
        AU  - Dobbelaere, Sabien
AU  - Popovici, Ana
        TI  - Rent Sharing under Innovation Tax Breaks
        PY  - 2026/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 19040
        UR  - https://www.iza.org/publications/dp19040
        AB  - We study whether firms share gains from innovation tax incentives with incumbent workers and whether such rent sharing is associated with increased worker retention. The Dutch innovation box reduces tax rates on profits from in-house innovation. Linking first-time beneficiaries to matched employer-employee data, we combine nearest-neighbour matching with staggered difference-in-differences. Part of the additional after-tax surplus is passed on to incumbent workers: wages rise by 3.27% on average, with increases of 2.05% for workers least involved in R&D and 4.14% for tertiary-educated STEM workers. Descriptively, treated non-R&D incumbents are 3.47 percentage points less likely to switch employers following treatment.
        KW  - innovation policy
KW  - rent sharing
KW  - worker mobility
        ER  -