The impact of the informal economy on R&D, wage inequality and economic growth
We extend the existing research and development (R&D) growth literature by focusing on the short-medium-long run effects of the informal sector on R&D intensity, wage inequality and economic growth, and by considering 18 OECD countries between 1990 and 2008. We show that: the steady state is...
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| Format: | article |
| Language: | eng |
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2017
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| Online Access: | https://hdl.handle.net/10216/120809 |
| Country: | Portugal |
| Oai: | oai:repositorio-aberto.up.pt:10216/120809 |
| Summary: | We extend the existing research and development (R&D) growth literature by focusing on the short-medium-long run effects of the informal sector on R&D intensity, wage inequality and economic growth, and by considering 18 OECD countries between 1990 and 2008. We show that: the steady state is unique and stable; the share of informal economy (IE) in production affects negatively R&D intensity and wage equality; Nordic countries have the lowest share of IE in production, while Mediterranean countries have the highest share of IE, wage inequality and R&D intensity but R&D spillovers are lower. |
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