The impact of health sector on R&D,economic growth and wages |
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Authors: | Oscar Afonso Ana Sarabanda |
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Affiliation: | 1. Faculty of Economics, University of Porto, OBEGEF, Porto, Portugaloafonso@fep.up.pt;3. Faculty of Economics, University of Porto, OBEGEF, Porto, Portugal |
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Abstract: | We extend the existing R&D growth literature by focusing on the short-, medium-, long-run effects of the health sector on R&D intensity, economic growth and wages, and by considering 21 OECD countries between 1991 and 2008. We show that: (i) there is a unique and stable steady state; (ii) an increase in health-labour share in skilled population has no effect on growth, but affects negatively (positively) the R&D intensity (the skill premium); (iii) Anglo–Saxons countries have the lowest health-labour share in skilled-labour population, and Nordic countries have the lowest skill premium and the highest consumption/production of healthcare per capita. |
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Keywords: | R& D health endogenous economic growth wage inequality |
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