Internet, Literacy and Earnings Inequality
AbstractThis paper outlines a theoretical framework to think about the role of NIT on earnings inequality at a domestic level. Two main ideas inspired a growth model. First, to be connected is only meaningful for people who are already literate. Second internet, like the invention of printing, permits to increase the part of knowledge that an individual can use. The results are obtained in terms of the Lorenz criterion. The role of some key parameters is emphasized like the elasticity of substitution between talent and knowledge. Two forces are at work. On the one hand, the gap between literate and non literate people will increase. On the other hand, the incentive to become literate increases. Policy implications are derived.
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Bibliographic InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 68 (2002)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
Other versions of this item:
- Alain TRANNOY, 2002. "Internet, Literacy and Earnings Inequality," Discussion Papers (REL - Recherches Economiques de Louvain) 2002023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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