Year: 2025
Type: article
Abstract: This research studies the association between two digital divides and income inequality around the globe. By pooling data from 97 countries between 2008 and 2016, we run a nonlinear regression model with fixed effects to analyze the impact of digitalization on income disparity and test the mediating and moderating effects of various macroeconomic variables. A U-shaped link is identified between digital divides and income inequality in upper- to middle-income countries, although an inverted U-shaped relationship stands in low-income and lower- to middle-income nations. Financial inclusion, technological advancement and unemployment are found to be significant mediators, while education is a significant moderator in changing the relationship between digitalization and income distribution. Our findings are timely and relevant that provides fresh policy perspectives for countries at different development phases to address income inequality in the process of digitalization.
Source: Journal of Applied Economics
Authors: Jun Zhang, Yan Li, Zijian Fang
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $1,533
OpenAlex ID: W4414941228