The impact of the informal economy on R&D, wage inequality and economic growth

• Type: Article in International Scientific Journal
• Date: 2017-02-01

Authors

Óscar Afonso (Author) FEP; Rui Sarabanda (Author) Other

Journal

Title: Applied Economics Letters

Vol. 24

Pages: 39-44

ISSN: 1350-4851

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 0 Citations

ISI Web of Science

Econlit

Scientific classification

CORDIS: Social sciences > Economics

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00M-606

DOI: 10.1080/13504851.2016.1158913

Abstract (EN): 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.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 6