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Technological Progress and Income Inequality

Author

Listed:
  • Karni, Edi
  • Zilcha, Itzhak
Abstract
This paper examines the effects of Hicks-neutral, Harrod-neutral, and Solow-neutral technological improvements on the distribution of income in an overlapping generations economy with endogenous labor supply and a bequest motive. Income inequality in this model is generated by a stochastic process representing random variations in intergenerational transfers and pure luck. The comparative dynamics analysis trace the effects of the aforementioned technological changes in each and every period after they occur. These effects depend on the nature of the technological change and on the elasticity of substitution.
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Suggested Citation

  • Karni, Edi & Zilcha, Itzhak, 1990. "Technological Progress and Income Inequality," Foerder Institute for Economic Research Working Papers 275476, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275476
    DOI: 10.22004/ag.econ.275476
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    File URL: https://ageconsearch.umn.edu/record/275476/files/TEL-AVIV-FSWP-153.pdf
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    Citations

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    Cited by:

    1. Zilcha, Itzhak, 2003. "Intergenerational transfers, production and income distribution," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 489-513, March.
    2. Jean‐Marie Viaene & Itzhak Zilcha, 2009. "Human Capital and Inequality Dynamics: The Role of Education Technology," Economica, London School of Economics and Political Science, vol. 76(304), pages 760-778, October.
    3. Tomiwa Sunday Adebayo, 2024. "Exploring the heterogeneous impact of technological innovation on income inequality: Formulating the SDG policies for the BRICS-T economies," Energy & Environment, , vol. 35(4), pages 1773-1792, June.
    4. Yoshinori Kurokawa, 2011. "Variety-skill complementarity: a simple resolution of the trade-wage inequality anomaly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 297-325, February.
    5. repec:bla:econom:v:59:y:1992:i:234:p:221-33 is not listed on IDEAS
    6. Viaene, J.M. & Zilcha, I., 1997. "Capital Markets Integration , Growth and Income Distribution: A Dynamic Analysis," Papers 31-97, Tel Aviv.
    7. Zilcha, Itzhak, 1996. "Intergenerational Transfers Economic Growth and Income Distribution," Foerder Institute for Economic Research Working Papers 275619, Tel-Aviv University > Foerder Institute for Economic Research.
    8. Ronald Fischer, 1999. "Income distribution and Trade Liberalization," Documentos de Trabajo 67, Centro de Economía Aplicada, Universidad de Chile.
    9. Betts, Julian R., 1989. "Technological Change, Sectoral Shifts and the Distribution of Earnings: A Human Capital Model," Queen's Institute for Economic Research Discussion Papers 275217, Queen's University - Department of Economics.
    10. João Ricardo Faria & Miguel A. León‐Ledesma, 2004. "Habit formation, work ethics and technological progress," Manchester School, University of Manchester, vol. 72(3), pages 403-413, June.
    11. Kaganovich, Michael & Zilcha, Itzhak, 2012. "Pay-as-you-go or funded social security? A general equilibrium comparison," Journal of Economic Dynamics and Control, Elsevier, vol. 36(4), pages 455-467.
    12. Murat Cetin & Harun Demir & Selin Saygin, 2021. "Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 47-69, July.

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