Impact of strengthening Intellectual Property Rights Regime on income inequality: An econometric analysis

Saini, Swati and Mehra, Meeta K (2014): Impact of strengthening Intellectual Property Rights Regime on income inequality: An econometric analysis.

Abstract

The theory predicts that IPRs tend to raise income inequality by generating a more skewed distribution of wages. Stronger IPRs increase the demand for skilled labor force as it raises the return on R&D activities. This causes a relative increase in skilled labor wages, creating a wage bias in favor of skilled labor against unskilled labor, thus aggravating income inequality within a country. Using dynamic panel data techniques and a sample of 60 countries over 1980-2011, we examine the impact of strengthening Intellectual Property Rights (IPRs) on income distribution of a country. Our results indicate that contrary to findings of previous research, strengthening of IPRs reduces income disparities within a country.

• Item Type: MPRA Paper
• Language: English
• Keywords: Developing countries, Globalization, Inequality, Intellectual Property Rights
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F62 - Macroeconomic Impacts; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development

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