The impact of health sector on R&D, economic growth and wages
Afonso, O., A. Sarabanda
,
(2016)
,
"The impact of health sector on R&D, economic growth and wages"
,
Applied Economics Letters
,
23
,
1006-1011
.
CEFAGE Author(s)
Óscar João Atanázio Afonso
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) AngloSaxons 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.