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Income Inequality and Technological Adoption

Author

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  • Marcelo Santos
  • Tiago Neves Sequeira
  • Alexandra Ferreira-Lopes

Abstract

We relate technological adoption (of different technologies) with income inequality. In the process, we discover that some technologies, such as aviation, cell phones, electric production, internet, telephone, and TV, are skill-complementary in raising inequality. We construct standardized indexes of skill-complementary technological adoption for modern information and communication technologies (ICT), older ICT, production and transport technologies. We find strong evidence that older ICT and transport technologies (and less frequently modern ICT) tend to increase inequality. Additionally, we discover that results are much stronger in rich countries than in poor ones. Our results are quite robust to a series of changes in specifications, estimators, samples, and measurement of technology adoption. These results may bring insights into the design of incentive schemes for technology adoption.

Suggested Citation

  • Marcelo Santos & Tiago Neves Sequeira & Alexandra Ferreira-Lopes, 2017. "Income Inequality and Technological Adoption," Journal of Economic Issues, Taylor & Francis Journals, vol. 51(4), pages 979-1000, October.
    • Handle: RePEc:mes:jeciss:v:51:y:2017:i:4:p:979-1000
    DOI: 10.1080/00213624.2017.1391582
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    Cited by:

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    2. Ofori, Isaac K., 2024. "Frontier Technology Readiness, Democracy, and Income Inequality in Africa," EconStor Preprints 298788, ZBW - Leibniz Information Centre for Economics.
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    4. Shiferaw, Yegnanew A., 2024. "A spatial analysis of the digital gender gap in South Africa: Are there any fundamental differences?," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    5. Ofori, Isaac K., 2024. "Frontier Technology Readiness, Democracy, and Income Inequality in Africa," MPRA Paper 121243, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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