Research and development: The easy way to reduce income inequality
Featherstone, M. 2021. Research and development: The easy way to reduce income inequality -- In Proceedings: 17th Annual Symposium on Graduate Research and Scholarly Projects. Wichita, KS: Wichita State University
Increasing awareness of income inequality has provoked discussions of the detriment to society and what can or should be done about it. This paper uncovers a focus area where resources can be used to decrease income inequality. A cross-sectional regression of 61 countries shows a significant positive correlation between increased spending on research and development and decreased inequality or every additional 1% of GDP spent on R&D, income inequality, as measured by the Gini coefficient, decreases by 2.72%. The sample set includes countries along the developmental spectrum, showing that even more advanced economies can benefit from spending on R&D. The possibility exists that R&D, which is fueled by education, also corresponds with a continued path of upward mobility.
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Research completed in the Department of Economics, W. Frank Barton School of Business