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Impact of strengthening Intellectual Property Rights Regime on income inequality: An Econometric Analysis

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  • Swati Saini

    (CITD,SIS, Jawaharlal Nehru University)

  • Meeta Mehra

    (CITD,SIS. Jawaharlal Nehru University)

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 55 countries over 1980-2011, we examine the impact of strengthening Intellectual Property Rights (IPRs) on income distribution of a country. Our results indicate that the impact of IPRs on income distribution is contingent upon level of development of a country.Strengthening of IPRs increases income inequality in countries with higher level of development having higher ability to innovate.

Suggested Citation

  • Swati Saini & Meeta Mehra, 2018. "Impact of strengthening Intellectual Property Rights Regime on income inequality: An Econometric Analysis," Economics Bulletin, AccessEcon, vol. 38(4), pages 1703-1719.
    • Handle: RePEc:ebl:ecbull:eb-17-00208
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    Cited by:

    1. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    2. Christian Kiedaisch, 2021. "Growth and welfare effects of intellectual property rights when consumers differ in income," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(4), pages 1121-1170, November.
    3. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.

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    More about this item

    Keywords

    Developing countries; Globalization; Inequality; Intellectual Property Rights.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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