The Impact of Technology on Global Socioeconomic Inequality

Can technology bridge the gap between the rich and the poor, or is it widening the chasm?

The link between technology and global socioeconomic inequality is complex. Technology can boost economic growth and connect people, but it also can make inequality worse. For example, in low-income Asia-Pacific countries, less than 2% of people have fixed-broadband. This number has barely changed in nearly 20 years.

In contrast, East and North-East Asia have fixed-broadband subscriptions ranging from 22% to 41%. This shows a big digital divide in the region.

Technology’s impact on society is significant. It can make things more efficient and productive, but it can also lead to job losses and more income inequality. Investments in artificial intelligence (AI) are especially interesting. They show a link between AI, market size, and investment in ICT services. This could make existing inequalities worse.

Income and wealth gaps are growing worldwide. In the U.S., the richest 1 percent now have about 22 percent of the income, up from 10 percent in the 1980s. Their wealth share is almost 40 percent. In 2017, 4 out of 5 dollars of global wealth growth went to the top 1 percent. These numbers highlight the need for policies that use technology’s benefits while addressing its challenges.

Key Takeaways

• Technology’s dual nature can both streamline processes and enhance income disparity.
• Low-income countries face significant barriers to accessing technology, deepening the digital divide.
• AI investment correlates with greater market size and technology absorption, potentially exacerbating inequalities.
• The income share of the richest has significantly increased, indicating rising economic disparity.
• Inclusive policies are crucial in maximizing the benefits of technology and minimizing its socioeconomic challenges.

The Digital Divide: Bridging the Gap

The world is getting more digital, but many people still lack Access to Technology. UNESCO says about 45.2 percent of households worldwide don’t have internet. This big gap causes economic and educational problems.

Women face a bigger challenge in the digital divide. They are 23 percent less likely to use mobile internet than men. This gap is even bigger in places like Asia, Africa, and South America, reaching 30–50 percent.

Education is also hit hard by the digital divide. In the U.S., 55 percent of students without internet come from Black, Hispanic, and Native American homes. These students make up only 40 percent of all students. Also, 50 percent of these students come from families earning less than $50,000 a year. UNICEF says 1.3 billion kids aged three to seventeen don’t have internet at home.

The divide is also seen in different places. In 2022, 80 percent of Europeans had internet, but only 22 percent of Africans did. Broadband access could create $186 billion in economic output and 875,000 jobs in the U.S. This shows how important digital infrastructure is.

There are efforts to close the gap. For example, a Texas school district spent more on internet and saw a 4.7 percent rise in graduation rates. The bipartisan Infrastructure Investment and Jobs Act also set aside $65 billion for this cause. But, the gap might still get wider, showing we need to keep working on it.

Closing the digital gap is more than just giving people Access to Technology. It’s also about teaching digital skills and education. We need to keep working to make sure everyone has a chance to grow and succeed in the digital world. Only then can we create a fair digital space for everyone.

Technological Unemployment and Job Displacement

Automation has sparked a lot of debate among experts. A study by Carl Benedikt Frey and Michael Osborne found that 47% of US jobs could be automated. This could lead to many people losing their jobs, especially in mid-level and low-skilled positions.

Different countries face different levels of job risk from automation. Research shows that some countries, like Korea and Estonia, have a low risk of 6%. But others, like Slovakia, have a risk of 33%. This shows how automation affects people in different ways around the world.

There’s a big need for skilled workers in today’s job market. Employers in places like warehouses struggle to find people with the right skills. This problem is expected to last for the next ten years, making it harder for low-skilled workers to find jobs.

A survey found that only 36% of top people officers feel ready for the future. This lack of readiness might slow down efforts to deal with job loss caused by technology.

History shows that automation doesn’t always mean job loss. For example, ATMs didn’t reduce the number of bank teller jobs. Instead, banks opened more branches, creating more jobs. This shows that automation can lead to new job opportunities in unexpected ways.

The US is leading in research on job loss due to technology. It has six notable papers on the topic. Over 50% of the research is in the economic field, showing a big concern about how automation affects jobs.

Education and Technological Advances

Digital tools are changing education fast. This change affects access to online education a lot. At the start of the 2020-2021 school year, over half of K-12 students in the U.S. were learning online. But, this shift shows that some groups still don’t have equal access.

The COVID-19 pandemic made online learning more common. But, it also showed the big challenges and unfairness in getting an education. It’s known that 70% of teachers give homework online. Yet, over five million kids don’t have internet or computers at home.

Students from lower-income families face big problems. They lost 12.4 months of learning online, almost double what others lost. A 2016 report also found that those making less than $30,000 a year were less likely to have internet or devices at home. This makes it hard for them to learn online.

A report by Zucman and Piketty suggests we need big changes to fix these issues. They say we should use taxes to help and invest in training. We also need to work together internationally to solve these problems.

We also need to train and reskill people to keep up with new jobs. The World Economic Forum says we’ll need more people with skills like thinking and being creative. Making sure everyone has access to online education is key to getting ready for the future.

To make education fair for everyone, we must keep working and make big changes. By fixing the digital divide and using smart policies, we can give everyone a chance to learn and grow. This way, we can use technology to help everyone succeed in school and in their careers.

The Impact of Technology on Global Socioeconomic Inequality

Looking into the Robustness of Research Findings, we find some key points about technology and inequality. Studies use strong models to show how tech affects money gaps. For example, a study with data from 1995 to 2020 in 59 countries shows interesting results.

It turns out that new tech makes money gaps worse, especially in rich countries. In the U.S., the top 10% now get 47% of the income, up from 35%. The top 1% saw their share double to 21%.

To make tech work for everyone, we need smart policies. The Robustness of Research Findings tells us to use data to make decisions. We should support policies that help everyone and protect jobs for those who need them most.

Also, income gaps in countries have grown, but they’ve shrunk between countries. This is because new economies are growing fast. But, productivity has been slow in two-thirds of countries since 2013, making it crucial to act.

To create a fairer world, governments should focus on fixing tech’s bad sides. They can do this with fair taxes and by investing in education. The aim is to share the good things tech brings more fairly.

Conclusion

Technology plays a big role in our world today. It affects how we live and work, especially when it comes to money and jobs. We’ve looked at how technology can help or hurt people’s chances in life.

Technology can make things worse for some, but it can also help others. For example, video calls have changed how we work from home. But, not everyone can join in because of slow internet. This shows we need to make sure everyone has a chance to use technology.

Studies from places like the International Labour Organisation show us the way. They say we need to use technology in a way that helps everyone. This means making sure it’s fair and doesn’t leave some people behind.

We need to use technology wisely to make things better for everyone. This means making sure it’s fair and helps everyone. By doing this, we can make the world a better place for all of us.

Source Links

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• Understanding Technological Unemployment: A Review of Causes, Consequences, and Solutions
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• Bridging the Technological Divide in Education – Harvard Political Review
• AI’s Impact on Income Inequality
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• Technology, Work, and Inequality