Does the digital economy development improve or exacerbate income inequality? International evidence

With the fast development of the digital economy, this study concentrates on the influence of digital economy development on income inequality in 97 countries. Three results are discovered. Firstly, the digital economy development contributes to improving income inequality, but this effect is weaken...

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Bibliographic Details
Published in:Managerial and decision economics 2024-09, Vol.45 (6), p.4012-4038
Main Authors: Wang, Feng, Shen, Shaoxin
Format: Article
Language:English
Subjects:
Economic development
Economic inequality
Economics
Globalization
Human capital
Income
Income inequality
Labor market
Socioeconomics
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Summary:With the fast development of the digital economy, this study concentrates on the influence of digital economy development on income inequality in 97 countries. Three results are discovered. Firstly, the digital economy development contributes to improving income inequality, but this effect is weakened by the moderating effect of globalization globally. Secondly, digital economic development improves income inequality in lower‐middle‐income and low‐income countries; while the high‐income countries and upper‐middle‐income are not significant. Thirdly, the mechanisms reducing inequality are explored in terms of generating industries with low barriers to new entrants, reducing labor market information asymmetries, and promoting human capital equalization.
ISSN:0143-6570
1099-1468
DOI:10.1002/mde.4231