Financialization, digital technology and income inequality

Abstract

This paper investigates the impact of digital technology on the relationship between financialization and income inequality of 54 countries from 2010 to 2015. The results show that financialization and digital technology widen the income inequality gap. Therefore, policies should be centred primarily on eliminating obstacles and developing innovative products that focus on solutions to the low-income consumer problem and those who have been marginalized.

The role of digitalization in the FDI – income inequality relationship in developed and developing countries

“…There are few studies on the relationship between digitalization and income inequality. However, some studies report that progress in digital technology decreases income inequality (Richmond and Triplett, 2018;Canh et al, 2020), while some note that digitalization increases it (M€ onnig et al, 2019;Law et al, 2020;Mohd Daud et al, 2020).…”

Digitalization, income inequality, and public health: Evidence from developing countries

“…The results suggest that digitalization alleviates income inequality [ 38 ]. Others believe that digitalization could exacerbate income inequality [ 39 , 40 ]. By applying a generalized linear mixed model and a random effects model based on Australian household panel data covering 2011–2017, Ali et al (2019) found that gross information and communication technology affordability is positively associated with income distribution and socioeconomic inequality [ 41 ].…”

Gender wage gap, quality of earnings and gender digital divide in the European context

“…The digital divide influences a wide range of economic, social and personal life spheres as well, from social to financial (Mohd Daud et al 2021 ), labour market (Al Mamun and Wickremasinghe 2014 ) and relations with institutions, particularly government (Robinson et al 2022 ). The issues targeted by digital divide studies are usually related to the internet.…”