<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The paper raises two questions: (1) Does digitalization contribute to wealth and income inequality? (2) Does it affect inequality differently between advanced and developing economies? For the answers, the paper investigates the impact of digitalization on inequality for a balanced panel dataset of advanced economies and a balanced panel dataset of developing economies from 2002 through 2020. It applies the system-GMM and PMG estimators for estimation and robustness check. Some exciting results it provides. First, digitalization narrows inequality in developed economies and widens in developing economies. Second, the economic growth – income inequality relationship is U-shaped as real GDP per capita increases from low (developing economies) to high (advanced economies). Third, unemployment enhances inequality in two groups. The results note some necessary implications to develop digital technology and reduce income inequality in these economies.</p>
</abstract>

The paper raises two questions: (1) Does digitalization contribute to wealth and income inequality? (2) Does it affect inequality differently between advanced and developing economies? For the answers, the paper investigates the impact of digitalization on inequality for a balanced panel dataset of advanced economies and a balanced panel dataset of developing economies from 2002 through 2020. It applies the system-GMM and PMG estimators for estimation and robustness check. Some exciting results it provides. First, digitalization narrows inequality in developed economies and widens in developing economies. Second, the economic growth – income inequality relationship is U-shaped as real GDP per capita increases from low (developing economies) to high (advanced economies). Third, unemployment enhances inequality in two groups. The results note some necessary implications to develop digital technology and reduce income inequality in these economies.

Does Digitalization Widen Income Inequality? A Comparative Assessment for Advanced and Developing Economies

University of Finance – Marketing (UFM)

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The paper raises two questions: (1) Does digitalization contribute to wealth and income inequality? (2) Does it affect inequality differently between advanced...

Does Digitalization Widen Income Inequality? A Comparative Assessment for Advanced and Developing Economies

Published Online: Dec 23, 2022

Page range: 154 - 171

DOI: https://doi.org/10.2478/jeb-2022-0021

Keywords
digitalization, income inequality, advanced economies, developing economies

© 2022 Van Bon Nguyen, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Does Digitalization Widen Income Inequality? A Comparative Assessment for Advanced and Developing Economies

Published Online: Dec 23, 2022

Page range: 154 - 171

DOI: https://doi.org/10.2478/jeb-2022-0021

Keywordsdigitalization, income inequality, advanced economies, developing economies

© 2022 Van Bon Nguyen, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
digitalization, income inequality, advanced economies, developing economies