PEGFA Research Seminars 2023-24: Cem Oyvat & Faith Adobamen

7th Nov 2023 1pm - 2:30pm


The Institute of Political Economy, Governance, Finance and Accountability invites you to its Research Seminar Series 2023-24.

The third seminar in the series will feature PEGFA experts Dr Cem Oyvat and Dr Faith Adobamen.

QA020 TBC 5.00-6.30pm

Dr Cem Oyvat will be presenting "Minimum wage, aggregate demand and employment: a demand-led model".

Please see the abstract here:

This paper aims to examine the impact of minimum wages on aggregate demand and employment using a demand-led post-Kaleckian growth model. Benefitting from previous empirical work on wage- and profit-led growth and minimum wages, the model considers the impact of minimum wages on consumption, investment, and net exports through its effects on informality, prices, labour productivity, and distribution between workers and capitalists.The paper shows that higher minimum wages could lead to higher aggregate demand in the short run through higher consumption and investments in labour-saving technologies, which could reduce the possible negative effects of minimum wages on employment or create additional employment. If higher minimum wages have a strong impact on informality, then the impact of minimum wages on consumption and net exports is less positive and less negative, respectively. Higher minimum wages are also likely to increase labour productivity in both the short and medium run, which would have further effects on aggregate demand, employment, and prices. Finally, higher minimum wages are likely to affect aggregate demand and employment in small open economies more negatively or less positively.

The working paper can be found here.

Dr Faith Adobamen will presenting "The spatial dimensions of knowledge spillovers on regional productivity".

Please see the abstract here:

The impact of regional R&D on productivity, as well as the comparative productivity effects of R&D from the business, government and higher education sectors remains understudied. I investigate the indirect effects of business, government, and higher education R&D on regional productivity using a panel dataset of 35 UK NUTS-2 regions from 2005 to 2016. This study examines the spatial dimension of R&D spillovers in the UK. The objective of this research evaluates whether regional productivity is correlated between regions and how R&D spillovers affects regional productivity indirectly.
Studies on spatial economics indicates that there exists a positive effect of spatial R&D spillovers and the importance of geographical proximity within the region maters. However, these studies are focused on patent data (e.g., as demonstrated by Paola Cardamone, 2017; Audretsch, 2003). This research explores the spatial dimension of R&D spillovers. The Moran test is applied to examine whether spatial autocorrelations exist. There is evidence of spatial autocorrelations arising from productivity, capital, employment, and all R&D types except government R&D. There is however no evidence of spatial autocorrelations from the residuals. Spatial autoregression and Spatial Durbin regressions are estimated using a quasi-maximum likelihood estimator. The results show evidence of spatial effects from productivity, Total R&D and R&D from the Business sector. The results indicate that proximity matters for R&D spillovers to occur. In other words, regional productivity in one region is positively correlated with productivity and (particularly business sector) R&D from neighbouring regions.

Click here to join the seminar via Microsoft Teams.

We look forward to seeing you there!

Please find the entire programme for this year's Research Seminar Series here.