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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:

    1. Ibtissem Aribi & Lobna Ben Hassen, 2021. "Phases Of Economic Development In An Endogenous Growth Model With Innovation And Education," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 6(2), pages 78-87, September.
    2. Christina Sanchita Shah & Satish Krishnan, 2024. "ICT, Gender Inequality, and Income Inequality: A Panel Data Analysis Across Countries," Information Systems Frontiers, Springer, vol. 26(2), pages 709-727, April.
    3. Ofori, Isaac K., 2024. "Frontier Technology Readiness, Democracy, and Income Inequality in Africa," EconStor Preprints 298788, ZBW - Leibniz Information Centre for Economics.
    4. Murat Akça & Ömer Uğur Bulut & Samet Topal & Önder Balcı & Deniz Özyakışır & Serhat Çamkaya, 2025. "Is the Technology-Oriented Kuznets Curve Hypothesis Valid in Türkiye? An Assessment in the Context of SDG-10," Sustainability, MDPI, vol. 17(10), pages 1-19, May.
    5. Ofori, Isaac K. & Veling, Louise & Cullen, John, 2026. "Frontier Technology Adoption and Inclusive Green Growth in the EU: A Double-edged Sword?," MPRA Paper 127772, University Library of Munich, Germany.
    6. Manuela Magalhães & Tiago Sequeira & Óscar Afonso, 2019. "Industry Concentration and Wage Inequality: a Directed Technical Change Approach," Open Economies Review, Springer, vol. 30(3), pages 457-481, July.
    7. Ofori, Isaac K., 2024. "Frontier Technology Readiness, Democracy, and Income Inequality in Africa," MPRA Paper 121243, University Library of Munich, Germany.
    8. 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).

    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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