income-inequality
The increasing disparity in income distribution within and across countries, exacerbated by technological and economic changes.
3 chapters across 1 book
The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (2014)Erik Brynjolfsson and Andrew McAfee
Chapter 9, "The Spread," primarily compiles extensive references that illustrate the diffusion and impact of digital technologies, such as mobile phones, social media platforms, and computing innovations, on productivity, labor markets, and income inequality. It highlights the growing divergence between productivity gains and median compensation, the polarization of job opportunities due to technological change, and the historical context of computing advancements and automation. The chapter also touches on the socio-economic consequences of these technological shifts, including the widening income inequality and the changing nature of work.
Chapter 10 explores the phenomenon of 'winner-take-all' or 'winner-take-most' markets, where a small number of superstars or top performers capture a disproportionate share of rewards and market share. The chapter discusses economic theories and empirical evidence explaining why digital technologies and low marginal costs amplify this effect, leading to extreme income disparities and market concentration among top talent and products. It also examines the implications of power law distributions in incomes and sales, highlighting the increasing returns to top performers in the digital economy.
Chapter 11 explores the economic and social implications of technological progress, focusing on the distribution of wealth and income inequality in the context of rapid automation and innovation. It discusses historical and contemporary perspectives on the middle class, employment, and consumer welfare, highlighting debates about whether technological advances exacerbate or alleviate economic disparities. The chapter draws on a wide range of economic theories and empirical studies to analyze how technology impacts labor markets, consumption patterns, and societal structures.