Income inequality: A pursuit race between education and technology
The adoption of new technologies requires a high level of human capital which is scarce at the start of technological diffusion. This scarcity leads to an increase in the wages of skilled workers at the expense of the wages of unskilled workers, which remain stable or decline. This causes an increase in income inequalities. But these inequalities can also decrease with the sudden rise in the supply of qualifications. So, on the one hand, we have a « technology effect » and on the other hand an « education effect ». We thus obtain a cyclical evolution of inequalities. This is well proven in the context of developed countries. In this work, we try to verify the effect of new technologies and the effect of education on income inequality for a sample of 52 developing countries. Our empirical study is based on Econometric Model with panel data estimation.