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The Role of Technological Change in Income Inequality in the United States

Author

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  • Elena Deskoska
  • Jana Vlčková
Abstract
This paper examines the impact of the technological change on income inequality in the United States of America. This is done by integrating theoretical and analytical findings of the channels through which technological change affects income inequality. The research is based on century-long income inequality data sets, although it prioritises the study of income inequality between the 1970s and the 2010s. The two major causes of rising income inequality have been technological change and globalisation. The paper also accounts for the other inequality triggers that have resulted from the political and economic structure of the country. The spread of automatisation and computerisation and of other changes associated with The Fourth Industrial Revolution are likely to reinforce skill-biased technological change. Therefore, new measures addressing income inequality, such as Universal Basic Income, are discussed.

Suggested Citation

  • Elena Deskoska & Jana Vlčková, 2018. "The Role of Technological Change in Income Inequality in the United States," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2018(1), pages 47-66.
    • Handle: RePEc:prg:jnlaop:v:2018:y:2018:i:1:id:596:p:47-66
    DOI: 10.18267/j.aop.596
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    More about this item

    Keywords

    income inequality; technological change; fourth industrial revolution; USA; globalisation;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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