Innovation and Income Inequality: World Evidence

Nikos Benos () and Georgios Tsiachtsiras

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we explore the effect of innovation on income inequality using annual country panel data for 29 countries. We demonstrate that innovation activities reduce personal income inequality by matching patents from the European Patent Office with their inventors. Our findings are supported by instrumental variable estimations to tackle endogeneity. The results are also robust with respect to various inequality measures, alternative quality indexes of innovation, truncation bias, the use of patent applications together with granted patents and different ways to split or allocate patents.

Keywords: top income inequality; overall inequality; innovation; citations; knowledge spillovers (search for similar items in EconPapers)
JEL-codes: D63 O30 O31 O33 O34 O40 O47 (search for similar items in EconPapers)
Date: 2019-02-07
New Economics Papers: this item is included in nep-gro, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92050

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