THE EFFECTS OF EDUCATION HEALTH AND R&D EXPENDITURES ON LABOR PRODUCTIVITY: A PANEL REGRESSION ANALYSIS ON OECD COUNTRIES

Abstract

In this study, the effects of education, health and R&D expenditures on labor productivity have been investigated. It consists of annual data of 25 OECD countries for the period from 2000 to 2012. A Fixed Effect Regression with Driscoll and Kraay Standard Errors has been designated as the estimator as a result of the required tests for panel data analysis. According to empirical evidence; education expenditure has a negative effect, health expenditure has a positive effect and R&D expenditure has a positive effect on labor productivity.