Rising income inequality as an unexpected effect of technological progress
DOI:
https://doi.org/10.33032/acr.4389Keywords:
technology change, productivity, income inequality, labour market, society polarisationAbstract
The Fourth Industrial Revolution opened substantial growth prospects for the world economy but raised new problems and exacerbated existing ones, including income inequality. The issue of inequality is of paramount socio-economic and geopolitical importance worldwide, as the significant social and wealth stratification of the population in society leads to the emergence of local, national, and even international confrontations. Changes in the industry affect economic and social development. Since productivity and employment are linked to economic growth, it is essential to examine the impact of technological developments on the labour market. This paper shows how technological developments associated with the fourth industrial revolution induce even more significant gaps between countries and affect income inequality. The fourth industrial revolution is full of opportunities and challenges. While technological progress undoubtedly contributes to improving competitiveness and productivity and raising living standards, it also leaves room for labour market polarisation, leading to increased inequality
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