|
Type of change inequality | Changes in |
Consequences of reducing inequality | Consequences of increasing inequality | Channels that are affected |
|
Information and communications technology | Effects of technology and productivity improvement | (i) Economies of scale (e.g., additive manufacturing) | (i) High-skill biased technological mutation | (i) Demand for factors of production |
(ii) Automation and robotics | (ii) Remuneration of factors of production |
(iii) Artificial intelligence (AI) | (iii) Increase skills and increase technology efficiency |
(iv) Knowledge gap |
Improve working conditions | (i) Reduction of start-up costs | (i) Increased national and international mobility of resources | (i) Wage competition, mediated by the interaction with productivity |
(ii) Ability to work remotely | (ii) Acceleration of technology transfer cycle |
(iii) Highly automated production |
Digital innovation | (i) Low start-up costs of digital innovation | (i) Winner takes all effects | (i) Organization of value generation |
(ii) Ease of entry into platform economy | (ii) Demonetization | (ii) Appropriation of rents by those who control information |
(iii) Discriminating algorithms |
(iv) Costs of goods and services |
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