Exploring the association between R&D expenditure and the job quality in the European Union

TL;DR

This study examines how R&D investments in the EU influence job quality, revealing a link between R&D spending and reduced average weekly working hours across countries.

Contribution

It uniquely analyzes the impact of R&D expenditures from different sectors on multiple dimensions of job quality in the EU.

Findings

Higher R&D expenditure correlates with fewer weekly working hours.

No significant effects found on other job quality dimensions.

R&D investment is associated with increased work hours reduction.

Abstract

Investment in research and development is a key factor in increasing countries' competitiveness. However, its impact can potentially be broader and include other socially relevant elements like job quality. In effect, the quantity of generated jobs is an incomplete indicator since it does not allow to conclude on the quality of the job generated. In this sense, this paper intends to explore the relevance of R&D investments for the job quality in the European Union between 2009 and 2018. For this purpose, we investigate the effects of R&D expenditures made by the business sector, government, and higher education sector on three dimensions of job quality. Three research methods are employed, i.e. univariate linear analysis, multiple linear analysis, and cluster analysis. The findings only confirm the association between R&D expenditure and the number of hours worked, such that the European Union countries with the highest R&D expenses are those with the lowest average weekly working hours.